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INTRODUTION

Every organization requires funds to run and maintain its business


sources of funds are required to finance for both.

Long term assets (fixed assets) Net working capital (Positive Current assets).
A firm can easily estimate the required funds by a detailed study of the investment decision. Generally capital is raised from the prime source are

Equity Debt

NEED OF THE STUDY


The corporate and personal income taxes do not exist.

The business risk is constant over time and is assumed to

be independent of its capital structure. rationality.

The given the assumptions of perfect information and The business risk is equal among all firms with in similar

operating environment.

OBJECTIVE OF THE STUDY


:
To know over all the cost of capital (KO) and the value of

the firm (V) are independent of the capital structure.


To know the capitalization rate of an equity and premium

for financial risk.


To know cut off rate for investment purposes is completely

independent of the way in which an investment is financed.

RESEARCH METHODOLOGY

Methodology is a systematic procedure of collecting information in order to analyze and verify a phenomenon. The collection of data through two principle sources viz. (1) Primary data (2) Secondary data

PRIMARY DATA: It is the information collected directly without any reference. . Some of the information had verified or supplemented with personal observation, the data collected through

conducting the personal interview with the officers of Ibays Suzuki Pvt Ltd. SECONDARY DATA: The secondary data was collected from already published sources such as pamphlets annual reports, reports and internal records Articles published in business details like the economic times, business time etc.

SCOPE OF THE STUDY


The term 'capital structure in automobile industry services' refers

to

those public and private limited companies that are using the different capital sources in the commercial automobile industry services.
These companies may have in their capital structure like equity

share capital, preference share capital, debenture etc.

The study is basically made to analyze the various capital structure

schemes to highlight the diversity of capital in Ibays Suzuki Company.

LIMITATIONS OF THE STUDY


The data of study of project collected of investor or

capital structure may not applicable in the situations. financial position may be affected or not.

The study of capital structure analysis of company

It is dipped to judge the results-value due to the change market values of the firm.