PPT-Theories of Capital Structure

Presented by Dr Monika Aggarwal Post Graduate Govt College CHD 1 Objectives of the Study Understand the theories of the relationship between capital structure and the value of the firm. Capital Structure. Presenter’s name. Presenter’s title. dd. Month . yyyy. 1. Introduction. The capital structure decision affects financial risk and, hence, the value of the company.. The capital structure theory helps us understand the factors most important in the relationship between capital structure and the value of the company.. Corporate Finance 35. Capital structure: An introduction to the debate. Different types of gearing. The effect of gearing. Differentiate business and financial risk. The underlying assumptions, rationale and conclusions of Modigliani and Miller’s models in a world without tax. Financial Leverage and Capital Structure Policy. What is meant by capital restructuring. What is the primary goal of financial managers?. Can leverage help in achieving such goals?. Capital Restructuring. Discussion on your Social Insights Report #1. The most exciting phrase to hear in science, the one that heralds new discoveries, is not “Eureka!” (I found it!) but “That’s . strange…”. “Millions saw the apple fall. . Sheridan Titman. University of Texas. Observations. Capital Assets are held in a variety of ownership structures. Public Corporations. Private Family Businesses. Private Equity Partnerships. Master Limited Partnerships. Week 4 NJ Kang, Creativity. What is that creative individuals do?. Sensing creative problems. . Sensing problems or difficulties. Making guesses or hypotheses about the problems. Evaluating the hypotheses, and possibly revising them. S. TRUCTURE AND . I. NVESTMENT IN . R. EAL . A. SSETS. Jon Wiley. Clemson University. Peter Chinloy. American University. Houses & Apartments. Substitutes in production & consumption. Starkly different investment behavior. Corporate Finance 36. Capital structure: further considerations. Capital structure in a world with tax. Financial distress. Agency costs. Borrowing capacity. Managerial preferences. Pecking order. Financial slack. Capital Restructuring. Capital restructuring involves changing the amount of leverage a firm has without changing the firm’s assets. The firm can increase leverage by issuing debt and repurchasing outstanding shares. Critical theories of underdevelopment take issue with the liberal understanding of global economics.. Liberal arguments hold that underdevelopment is the result mostly of internal factors (untrained workforce, inability to accumulate capital, corruption). It also holds that the global south can catch up with the north under the current economic system, and that growth in the north does not come at the expense of the south.. Sections. Cost of capital. Segmentation vs. integration. Differential costs of capital. Cross-border share listing . Foreign equity ownership restrictions. Subsidiaries’ capital structure. Cost of capital. -time class in Chinese SAIF What is meant by capital restructuring. What is the primary goal of financial managers?. Can leverage help in achieving such goals?. Capital Restructuring. Capital Restructuring. We are going to look at how changes in capital structure affect the value of the firm, . Capital Structure. Multinational corporations rely on capital to finance their expansion of existing subsidiaries, the creation of new subsidiaries, and other projects. . Because the MNC’s decisions regarding its capital structure determine its...