Basic tools of capital structure management include
A) EBIT-EPS analysis.
B) comparative profitability ratios.
C) capital budgeting techniques.
D) economic value added analysis

Question

Quizplus · Accepted Answer

EBIT-EPS analysis is a basic tool of capital structure management, as it helps to determine the impact of different levels of debt on the earnings per share and the operating income of a company. Comparative profitability ratios, capital budgeting techniques, and economic value added analysis are also important tools for financial management, but they are not specifically related to capital structure management.

Basic Tools of Capital Structure Management Include