A study of the capital structure involves an examination of long term as well as short term sources that a company taps in order to meet its requirements of finance. The scope of the study is confined to the sources that Ultra tech cements tapped over the years under study i.e. 2007-2011.
Objectives Capital Structure MBA Project Report:
The project is an attempt to seek an insight into the aspects that are involved in the capital structuring and financial decisions of the company. This project endeavors to achieve the following objectives.
1. To Study the capital structure of Ultra tech cements through EBIT-EPS analysis
2. Study effectiveness of financing decision on EPS and EBIT of the firm.
3. Examining leverage analysis of Ultra tech cements.
4. Examining the financing trends in the Ultra tech cements. For the period of 2007- 11.
5. Study debt/equity ratio of Ultra tech cements for 2007-11.
Research Methodology And Data Analysis
Data relating to Ultra tech cements. Has been collected through
- Published annual reports of the company for the year 2007-11.
- Detailed discussions with Vice-President.
- Discussions with the Finance manager and other members of the Finance department.
The collected data has been processed using the tools of
- Ratio analysis
- Graphical analysis
- Year-year analysis
These tools access in the interpretation and understanding of the Existing scenario of the Capital Structure.
Limitation Of EPS As A Financing-Decision
EPS is one of the mostly widely used measures of the company’s performance in practice. As a result of this, in choosing between debt and equity in practice, sometimes too much attention is paid on EPS, which however, has serious limitations as a financing-decision criterion.
The major short coming of the EPS as a financing-decision criterion is that it does not consider risk; it ignores variability about the expected value of EPS. The belief that investors would be just concerned with the expected EPS is not well founded. Investors in valuing the shares of the company consider both expected value and variability.
Download Capital Structure MBA Project Report.