Critical Analysis on Financial Reengineering Through Optimum Capital Structure for MSMES in India

Abstract

Financial Engineering is the design, development and implementation of innovative financial approach towards the growth of the organisation. The financial engineering is aimed at enhancing financial performance through techniques of finance optimisation and finance modelling. The noted finance optimisation technique is optimum capital structure decision making through financial leverage. Financial leverage is mainly consisting of debt equity mix in right proportion through financial reengineering so as to reduce weightage average cost of capital and enhance price earnings ratio there by increase the market price per share and market capitalisation. The present research has focussed on attainment of optimum capital structure for MSMEs of India through appropriate mix of debt and equity in view of apple-to-apple basis,