PPT-Capital Structure Decision in MNC

Capital Structure Multinational corporations rely on capital to finance their expansion of existing subsidiaries the creation of new subsidiaries and other projects Because the MNCs decisions regarding its capital structure determine its. 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. Theme 1: . Marketing & People. This theme enables students to understand how businesses identify opportunities and to explore how businesses focus on developing a competitive advantage through interacting with customers. Students develop an understanding of how businesses need to adapt their marketing to operate in a dynamic business environment. This theme also considers people, exploring how businesses recruit, train, organise and motivate employees, as well as the role of enterprising individuals and leaders.. 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. 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. 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. 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. What is “Making Capital . Investment Decision”?. Does Tesla Really Need a $5 Billion Battery. ? (. https://www.wsj.com/articles/does-tesla-really-need-a-5-billion-battery-factory-1396394466. ). The plant, dubbed a ". -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, . Theories of capital structure . . Value of firm(V) = EBIT/. K. o. Two school of thoughts. :. Financing decision affects the valuation. Net Income Approach(NI). Financing decision does not affect the valuation. Nature/ Significance of Capital Budgeting Decisions. Purchase of a long-term capital assets with the objective to generate return. Involvement of huge funds. Irreversible. Long-term profitability/risk.