1. How do the finance managers find the optimal capital structure for their companies? Dont write more than 6 lines.

1. Should we also calculate cost of retained earnings with them being internally generated, and not a form of direct investment by the outsiders? Explain in less than 8 lines.

2. Describe the inventory system mostly used in the industries where the number of input item used in the manufacturing process are numerous. Dont write more than 8 lines.

3. Explain the rationale behind Economic Order Quantity Model of managing inventories? Dont write more than 8 lines.

4. List six activities which would result in the change of capital structure for a company.

Describe the relation between optimal capital structure and firm valuation. Dont write more than five lines