1. How do the finance managers find the optimal capital structure for their companies? Dont write more than 6 lines.
2. Should we also calculate cost of retained earnings with them being internally generated, and not a form of direct investment by the outsiders? Explain in less than 8 lines.
3. Describe the inventory system mostly used in the industries where the number of input item used in the manufacturing process are numerous. Dont write more than 8 lines.
4. Explain the rationale behind Economic Order Quantity Model of managing inventories? Dont write more than 8 lines.
5. List six activities which would result in the change of capital structure for a company.
6. Describe the relation between optimal capital structure and firm valuation. Dont write more than five lines.