A STUDY ON CAPITAL STRUCTURE

The raising of more debt may help to improve the return to shareholders. But it will increase the risk and the fixed interest charges. On the other hand, raising of funds through equity capital will bring in more permanent funds.The study done on capital structure in the company has mainly highlighted the fact that the company is an unlevered firm which has no debt content. This in turn affects the returns to shareholders, the value of the firm and the financial leverage. Hence a review of the capital structure has been made essential to minimise the financial risk of the concern. The company basically has a good performance which could be made much better through an efficient and revised capital structure