ProjectClue.com WhatsApp or Call Us

projectclue whatsapp icon07030248044

Project Topic:

AN EVALUATION OF CAPITAL STRUCTURE AND PROFITABILITY OF BUSINESS ORGANISATION (A CASE STUDY OF SELECTED QUOTED COMPANIES)

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 66 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   2,956 people found this useful

Project Department:

ACCOUNTING UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

ABSTRACT

Capital structure is the proportion or each type of capital debt and equity used by a business organisation. Many organizations employ debt in their capital structure because of its benefits. One of the benefits is that interest on debt is tax deductible and reduces tax liability of the organizations concerned. Furthermore, failure to pay interest commitment can result to financial backwardness. The financial managers consider so many factors in their capital structure decisions because of the implications in the use of debt. The factors are cost of capital, debt capacity cash flow. Etc.

The primary aim of business organisation is to make maximum profit if possible. The researcher made a study of selected quoted manufacturing and oil servicing companies to see how capital structure related to profitability of business organizations.

Five companies were selected and their financial statements for four years extracted and analyzed. The analysis showed that there is a strong relationship between capital structure and profitability between debt equity ration and shareholders’ return. It means that the cost of debt in the companies put together is less than their return on investment. A company having return on investment greater than cost of debt will have an increasing shareholders’ return.

PROJECT PROPOSAL

This research will be based on an evaluation of capital structure and profitability of business organisation. The capital structure is the long-term capital requirement of the company which shows how the firm will be finance. And how the profitability of this company will be determined whether it will remain in business or not especially in the long-run.

In the course of doing this we will bring about the problems that will crises, the significance, objective of the study and the limited and the scope of the study.

Chapter two will deal with the collection of information from companies and textbooks i.e. (secondary source of data). This will aid to develop our question for developing of chapter three.

Chapter three will define the research methodology and sources of data used which can be with questionnaire or interviews method. This will help us to acquire information from field works ie our case study.

Chapter four will deal with the presentation, analyzing and interpretation of data by using the sample size to determine the population to conduct research.

Chapter five will deal with the conclusion, summary and the recommendation including the bibliography.

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgement

List of tables abstract

CHAPTER ONE: INTRODUCTION

1.1 Background of the study

1.2 Statement of the problem

1.3 Objective of the study

1.4 Significance of the study

1.5 Scope and limitation of the study

1.6 Research hypothesis

1.7 Definition of terms

       Reference

CHAPTER TWO: LITERATURE REVIEW

2.1 Implication of capital structure

2.2 Determinants of capital structure

2.3 Feature of appropriate capital structure

2.4 Concept of cost of capital

2.5 Capital structure theories

2.6 Existence of optimum capital structure traditional view

2.7 Criticism of traditional view

2.8 Modigliani and miller propositions

2.9 criticisms of Modigliani and miller propositions

2.10 Capital structure and corporate tax

2.11 Concept of profit and profitability

         Reference

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

3.1 Research design

3.2 Sources of data

3.3 Population and determination of sample size

3.4 Methods of investigation

      Reference

CHAPTER FOUR: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

4.1 Analysis of data

4.2 Test of Hypothesis

CHAPTER FIVE: SUMMARY OF FINDING CONCLUSION AND RECOMMENDATION

5.1 Summary of finding

5.2 Conclusion

5.3 Recommendations

Bibliography 

Appendices

CHAPTER ONE

1.0             INTRODUCTION

1.1 BACKGROUND OF STUDY

The most important decision all corporate managers should take into consideration is the way in which the long-term capital requirements of their companies should be financial. Capital structure is the permanent financing of a firm represented primarily by equity and long-term liability without including all short-term credits. Many factors have to surface in order to determine the capital structure of a business organisation. These factors are what the financial managers consider first in order to determine appropriate capital structure suitable to his firm. Some of the factors are: cost of capital, floation costs, size of the company, government policies and market condition. The combination of debt and equity has some implication. The first is that debt-equity ratio, which is regarded as an indicators of risk. According to Samuel etal (1992:44) high fixed interest commitment which must be paid by the business organisation irrespective of whether profits are made or not. Debt capacity which is the ability of a firm to service its debt payment of interest and

Get the complete project »


Instant Share On Social Media:


Can't find what you are looking for?
Call (+234) 07030248044.

OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS

A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   4771 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Accounting system according to an Italian monk, Luca Pacioli (1491), is the combination of personnel records and procedures that a business uses...Continue reading »

A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 70 ::   Attributes: Questionnaire, Data Analysis, Abstract

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Accounting system according to an Italian monk, Luca Pacioli (1491), is the combination of personnel records and procedures that a business uses...Continue reading »

A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM (A Case Study Of Ama Breweries Plc. Eke, Udi L.G.A And Africa Petroleum Plc Presidential Road)

 Format: MS WORD ::   Chapters: 1 - 5  ::   Pages: 87 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   12773 engagements

ABSTRACT This research study is a comparative analysis of computerized accounting system and manual accounting system with reference to Ama breweries plc. and African petroleum plc. all in Enugu state...Continue reading »

A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM (A study of Ama breweries Plc. and Africa petroleum Plc)

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   3652 engagements

ABSTRACT This research study is a comparative analysis of computerized accounting system and manual accounting system with reference to Ama breweries plc. and African petroleum plc. all in Enugu stat...Continue reading »

A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM (A study of Ama breweries Plc. Eke, Udi L.G.A and Africa petroleum Plc Presidential road)

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 67 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   2900 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Accounting system according to an Italian monk, Luca Pacioli (1491), is the combination of personnel records and procedures that a business uses to...Continue reading »

A COMPARATIVE ANALYSIS OF EARNING QUALITY BEFORE AND AFTER ADOPTION OF IFRS IN NIGERIA (A CASE STUDY OF MONEY DEPOSIT BANKS ABUJA)

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   3884 engagements

CHAPTER ONE INTRODUCTION BACKGROUND OF THE STUDY The purpose of International Financial Reporting Standard (IFRS) is to ensure high degree of transparency and comparability of financial statements....Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Abubakar Sani from Nigerian Investment Promotion Commission said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 2. Ogunniran Olawale from Ekiti state university said "Projectclue is really safe and reliable Quick access to project works Nice customer service Fast delivery of request Recommend this toy fellow students ".
    Rating: Excellent
  • 3. Fahat Nasir from isa kaita college of education dutsinma said "Fish farming a solution unemployment ".
    Rating: Very Good
  • 4. Ajimbi Oluwarotimi from Theology school osun said "Good ".
    Rating: Very Good
  • 5. Clement Abdullahi Ogiji from National Open University of Nigeria said "I am a living witness and have recommended project clue to a lot of students, so far none have been disappointed, very reliable and, trustworthy and dependable".
    Rating: Excellent
  • 6. Jhuee from Sultan national high school said "Good quality. I recommend project clue for any project research work.".
    Rating: Excellent