carry a lower interest rate as above.

Similarly a company can attempt raising required funds at a lesser cost through cross currency swaps in the international markets. In this, the company which may be having competitive advantage in one currency and in one market can exchange the principal with another currency of its choice and in another market and with another corporate which has an exactly matching and opposite requirement. Such swaps are gaining popularity in the market place Therefore, the company and its management have to continuously innovate instruments and securities to reduce the final cost. An innovation once introduced may not attract new investors. There is also a possibility and the other companies may further fine tune the instruments and securities and make them more innovative and attractive. Therefore financial innovation is a continuous process. Various target groups in financial market The different target groups in any financial market could be individual investor, institutional investors, private companies and corporates, public (government held or widely held) companies and corporates etc. A company can raise its required capital from any of these or all of these segments. A company can issue short term paper like commercial paper or certificate of deposits. It has also the option of raising the funds through public deposits. How these various target groups can be accessed? What are their expectations and requirements? What are the target groups the company is proposing to approach for its requirements and why? These are some of the immediate important questions a company may have to consider while deciding on the target group Capital structure frame work A financial capital structure frame work can be structured and evaluated from various perspectives. From the companys point of view, the following may merit consideration Return from investment

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