The profit on net worth of a corporate unit is said to be affected, inter alia, by its capital structure too. For, the capital structure affects the cost of capital, earnings per share and value of corporate units. By considering the different nature of the cost of capital of each source, finance manager has to plan that type of capital structure which minimizes the overall cost of capital and gives the maximum benefits to the owners of the business. There are various theories to examine the impact of capital structure on cost of capital, earning per share and valuation of corporate units. In this backdrop, the present book makes empirical study of relationships of capital structure with cost of capital, earnings per shares and valuation, particularly when the Indian capital particularly when the Indian capital market has undergone various structural changes during the last fifteen years. This in-depth study is mainly directed towards examining, in real life situation of the Indian corporate world, the pertinent aspects and dimensions of capital structure objectively. As such, the book will be very much useful to the practicing finance managers of the corporate world, students, scholars, policy-framer and general readers.
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