A STUDY ON CAPITAL STRUCTURE AND COST OF CAPITAL OF RURAL INDUSTRIES WITH SPECIAL REFERENCE TO KOVILPATTI TALUK
DOI:
https://doi.org/10.29121/shodhkosh.v5.i3.2024.5601Keywords:
Rural Industry, Capital Cost and Income StructureAbstract [English]
This study aims to analyze the capital structure and cost of capital of rural industries in Kovilpatti Taluk, focusing on understanding how these industries finance their operations and the financial implications of their capital choices. Rural industries play a crucial role in regional economic development by generating employment and utilizing local resources. The study investigates the composition of capital—debt and equity—and examines the cost associated with each source of capital to assess the overall cost of capital for rural enterprises. Data were collected through primary surveys and secondary sources, including financial statements and reports from local industry bodies. The findings reveal the predominant reliance on informal and formal sources of finance, the variation in capital structure across different types of industries, and the impact of capital costs on profitability and sustainability. The study also highlights challenges faced by rural industries in accessing affordable finance and suggests strategies for optimizing capital structure to reduce the cost of capital, thereby enhancing financial efficiency and growth prospects. This research provides valuable insights for policymakers, financial institutions, and entrepreneurs aiming to strengthen the rural industrial sector in Kovilpatti Taluk.
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Copyright (c) 2024 S. Subbiah Vijayakanth, Dr. V. Valliamma
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