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John was recently appointed as a director on the board of Fijian Holdings Limited (FHL)....

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Accounting

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John was recently appointed as a director on the board of Fijian Holdings Limited (FHL). In his first board meeting John hears others talking about "optimal capital structure". Scenario 2 Mr. Cama has been working in a printing firm for about seven years. Mr. Cama has saved some cash and has been seeking advice from friends over Kava sessions on how to utilize the cash. Required As a chartered accountant: i. Referring to Scenario I, explain what is meant by optimal capital structure and how to calculate it. ii. Referring to Scenario 2, explain the trade-off between risk and return in relation to holding cash

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