Firm management is said to consider a number of factors when deciding its capital structure. These include:
* The degree of operating risk
* The availability of tax shelters provided by things other than debt, such as accelerated depreciation, investment tax credits and operating tax-loss carry-forwards.
* The ability of assets to support borrowing.
* Management's attitude toward the risk created by financial leverage
* Industry and Market Dynamics
For casino industry or a firm in another industry, discuss these variables and how they would influence management's assessment of the suitability of financial leverage for the firm.© BrainMass Inc. brainmass.com June 4, 2020, 2:15 am ad1c9bdddf
For a firm competing in the casino industry, capital structure decision is as important as any other firm in other industries. Hence, a casino firm has to consider several factors. For example, industry and ...
The expert determines the degree of operating risk for Casino industry or a firm in another industry.