Advertisement

The Costs and Profits of Capital

  • John C. Carrington
  • George T. Edwards
Chapter
  • 5 Downloads

Abstract

Within the Anglo-Saxon economies, there is a theory and practice of capital gearing which rationalises the reality and sometimes ensures, through banking prudence, that the percentage of debt in the capital structure of most companies does not exceed about 30% of total capital employed. Both the theory and the practice of capital gearing are subjects which deserve to be dealt with in some detail.

Keywords

Interest Rate Stock Market Cash Flow Capital Structure Equity Capital 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Notes

  1. 2.
    For a fuller exposition of the arguments, see A. J. Merrett and Allen Sykes, The Finance and Analysis of Capital Projects, Longman, 1963, Chapter 15, Optimal Financing, pp. 393–422.Google Scholar
  2. 3.
    H. Kahn, The Emerging Japanese Superstate, Prentice-Hall International, London, 1971, p. 106.Google Scholar
  3. 4.
    F. Modigliani and M. H. Miller, ‘The cost of capital, corporation finance, and the theory of investment’, American Economic Review, June 1958.Google Scholar
  4. 6.
    Robin B. Fox, ‘Leverage in U.K. companies 1967–73—An empirical investigation’, Management Decision, 1977, Vol. 1.Google Scholar
  5. 9.
    A. Glyn and B. Sutcliffe, British Capitalism, Workers and the Profits Squeeze, Penguin Books, 1972.Google Scholar
  6. 10.
    James C. Abegglan, Business Strategies for Japan, Sophia University, Tokyo, 1970, pp. 58–68.Google Scholar
  7. 11.
    Kenneth K. Kurihara, The Growth Potential of the Japanese Economy, The Johns Hopkins Press, Baltimore, 1971, p. 77.Google Scholar
  8. 12.
    See also O. Shimomura, ‘Basic Problems of Growth Policy’, Economic Studies Quarterly, Mar. 1961.Google Scholar

Copyright information

© J. C. Carrington and G. T. Edwards 1979

Authors and Affiliations

  • John C. Carrington
  • George T. Edwards

There are no affiliations available

Personalised recommendations