Xena is planning to start her own business. She is contemplating on how much investment she...

 

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Xena is planning to start her own business. She is contemplating on how much investment she should contribute to her business and where she could find funding. Knowing that you have the basic accounting knowledge, Xena comes to you for some advice. Required: 1. Explain to Xena how a company's assets can be funded and where are the possible sources of funding? [5 points] 2. Explain the importance of capital structure to Xena and what is the ideal capital structure of a company? (Hint: you need to explain first what is capital structure). [8 points] 3. What are the ratios that relevant to capital structure? Provide the formulas and explain how to use them (i.e., what do they measure). [7 points] Xena is planning to start her own business. She is contemplating on how much investment she should contribute to her business and where she could find funding. Knowing that you have the basic accounting knowledge, Xena comes to you for some advice. Required: 1. Explain to Xena how a company's assets can be funded and where are the possible sources of funding? [5 points] 2. Explain the importance of capital structure to Xena and what is the ideal capital structure of a company? (Hint: you need to explain first what is capital structure). [8 points] 3. What are the ratios that relevant to capital structure? Provide the formulas and explain how to use them (i.e., what do they measure). [7 points]

Answer rating: 100% (QA)

1FINANCING IS GENERALLY DONE THROUGH TWO SOURCES WHICH Are commonly known as OWNERS FUND BORROWERS F... View the full answer