The Costs and Profits of Capital
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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.
KeywordsInterest Rate Stock Market Cash Flow Capital Structure Equity Capital
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