TAILIEUCHUNG - Lecture Business finance - Chapter 13: Principles of capital structure

In this chapter, you will learn: Explain the effects of financial leverage, distinguish between business risk and financial risk, understand the ‘capital structure irrelevance’ theory of Modigliani and Miller (MM), explain the roles of taxes and other factors that may influence capital structure decisions, | Chapter 13 Principles of Capital Structure 2 2 2 2 2 2 2 2 2 2 2 2 2 Learning Objectives Explain the effects of financial leverage. Distinguish between business risk and financial risk. Understand the ‘capital structure irrelevance’ theory of Modigliani and Miller (MM). Explain the roles of taxes and other factors that may influence capital structure decisions. 2 2 2 2 2 2 2 2 2 2 2 2 2 Learning Objectives (cont.) Understand the concept of an optimal capital structure, based on a trade-off between the benefits and costs of using debt. Explain the ‘pecking order’ theory of capital structure. Outline Jensen’s free cash flow theory. 3 3 3 3 3 3 3 3 3 3 3 3 3 Introduction Capital structure The mix of debt and equity finance used by a company. Optimal capital structure The capital structure which maximises the value of a company. Does the value of the net operating cash flow stream depend on how it is divided between payments to lenders and shareholders? 4 4 4 4 4 4 4 4 4 4 4 4 4 .

• Tài chính doanh nghiệp
• Business finance
• Lecture Business finance
• Capital market
• Financial management
• Capital structure
• Financial risk
• Sources of finance
• Leasing finance
• Sources of long term finance
• Long term finance
• Equipment finance
• Ordinary shares
• Long term debt
• Dividend Policy
• Capital structure decisions
• Capital market efficiency
• Futures contracts
• Option markets
• Analysis of takeovers
• International financial management
• Management of short term assets
• Financial decisions
• Financial mathematics
• The time value of money
• Project evaluation
• Project evaluation methods
• Portfolio theory
• Aasset pricing
• Financial intermediaries
• Sources of short term debt