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Are shareholders of a company likely to gain with a debt component in the capital employed?

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Question ajoutée par Utilisateur supprimé
Date de publication: 2013/08/26
Gaurav Kumar
par Gaurav Kumar , Senior Management Trainee , Raymond Ltd.

There is a simple concept rthat goes by the name of "Optimal Capital Structure".

The debt component in capital employed or in other words Leverage provieds an interset tax shield so a company gets benefitted because of that but there is an optimal mix exceeding which the heavy interests may dominate the benefits.

Optimal Capital Structure