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OPTIMAL USE OF CAPITAL STRUCTURE IN TERMS OF RISK/REWARD

K. Madhava Rao

Abstract


This paper is mainly concerned with determining the relationship that exists between the uses of the optimal capital structure and risk or reward pay off to the shareholders. The research is lowed on empirical data that was obtained from selected non-financial organizations around the world. Factors that affect the optimal capital structure of the organization are also investigated in the research. The primary data that was used throughout this research as based from the responses that were obtained from a well-structured questionnaire that was developed by the researchers administered to the targeted population.

Keywords


Capital structure, Optimal capital structure, Theories of capital structure, Risk, Reward, Cost of capital, Capital structure risk.

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References


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