TAILIEUCHUNG - Lecture Investment analysis & portfolio management - Chapter 23

After studying this chapter you will be able to understand: MM theory continued, arbitrage gain, objective, portfolio objective, introduction, return, stock returns, portfolio returns, portfolio proportion, mean return. | Investment Analysis and Portfolio management Lecture: 23 Course Code: MBF702 Outline RECAP MM Theory Continued Arbitrage Gain Objective Portfolio Objective Introduction Return Stock returns Portfolio returns Portfolio proportion Mean return MM Theory Continued The logical conclusions to be drawn from MM's theory with tax is that there is an optimal gearing level and that this is at debt in the capital structure. This implies that the financing decision for a company is vital to its overall market value and that companies should gear up as far as possible This is not true in practice; companies do not gear up to the hilt. Why not? In practice there are obviously many other factors that will limit this conclusion. These factors include the costs of financial distress; the existence of not only corporate tax but also personal taxes; Thus in practice there are a series of factors that a company will need to consider in deciding how to raise finance. Arbitrage Gain Arbitrage .

• Tài chính doanh nghiệp
• Investment analysis
• Portfolio management
• Investment management
• Investment theory
• Investment environment
• Investment analysis
• Investment companies
• Time value of money
• Characteristics of investment
• Investment portfolio management
• Investment analysis & portfolio management
• Investment background
• Developments in investment theory
• Management of common stocks