Contents :- Introduction on Capital Structure……………………..5 Summary and Evaluation of Articles…………………6 Conclusion………………………………………………………..8 References/Bibliography………………………………….9 Introduction On Capital Structure :- In the field of finance capital structure means a way an organization or firms finances their assets by the way of some mix and match of Equity‚ Debt or Hybrid Securities. The modern thinking on capital structure is based on the Modigliani-Miller theorem given by Franco Modigliani
Premium Finance Corporate finance Debt
FIN-03-06 A Dynamic Model of Optimal Capital Structure Sheridan Titman McCombs School of Business The University of Texas at Austin e-mail: titman@mail.utexas.edu Sergey Tsyplakov Moore School of Business The University of South Carolina‚ Columbia‚ SC This paper also can be downloaded without charge from the Social Science Research Network Electronic Paper Collection: http://ssrn.com/abstract/332042 A Dynamic Model of Optimal Capital Structure∗ Sheridan Titman McCombs School of Business
Premium Finance Depreciation Debt
Environmental Dynamism‚ Capital Structure and Performance: A Theoretical Integration and an Empirical Test Author(s): Roy L. Simerly and Mingfang Li Source: Strategic Management Journal‚ Vol. 21‚ No. 1 (Jan.‚ 2000)‚ pp. 31-49 Published by: John Wiley & Sons Stable URL: http://www.jstor.org/stable/3094118 Accessed: 07/12/2009 10:37 Your use of the JSTOR archive indicates your acceptance of JSTOR ’s Terms and Conditions of Use‚ available at http://www.jstor.org/page/info/about/policies/terms.jsp.
Premium Capital structure Finance
research design process is to identify a real world problem or management dilemma and provide a very brief description of the nature of the issue‚ the undesirable symptoms‚ and our inability or lack of knowledge to solve the problem. All the other components are designed to produce a contribution to knowledge that will help solve this problem. While there are some fields that do pure research‚ there are plenty of real world management problems and opportunities for improvement that management researchers
Premium Scientific method Problem solving Research
ARCHITECTURE The problems to estimate the cost of capital Before starting to describe the problems associated to the estimation of the cost of capital‚ it is extremely relevant to describe its meaning: according to Investopedia‚ it is “the cost of funds used for financing a business”. In order to carry out this process‚ the companies can only be financed through equity; only through debt; or using a “combination of debt and equity” - in this particular case it is a “overall cost of capital derived from
Premium Finance Weighted average cost of capital
CHAPTER 13 CAPITAL STRUCTURE AND LEVERAGE (Difficulty: E = Easy‚ M = Medium‚ and T = Tough) Multiple Choice: Conceptual Easy: Business risk Answer: c Diff: E [i]. A decrease in the debt ratio will generally have no effect on . a. Financial risk. b. Total risk. c. Business risk. d. Market risk. e. None of the above is correct. (It will affect each type of risk above.) Business risk Answer: d Diff: E [ii]. Business risk
Premium Stock market Finance Stock
Formulating Problem Statements: Using Audience Awareness to Contextualize Your Research Goals A persuasive problem statement consists of three parts: 1) the ideal‚ 2) the reality‚ and 3) the consequences for the reader of the feasibility report. Well constructed problem statements will convince your audience that the problem is real and worth having you investigate. Your strategy is one of contrast: by situating the the ideal scenario next to the situation as it exists‚ you can not only
Premium Problem solving Statements Negotiation
Problem Statement Survey Arthur Problem Statement Survey In today’s society a recession seems to happen at least once every decade. Each time a recession happens the unemployment rate goes up sky high and companies drop like flies and start filling bankruptcy. Small and large companies alike seem to always layoff staff in order to resolve their shortcomings in finances. This maybe a result of the recession or it could be an effort to take advantage of the recession label and clean house within
Premium Measurement Employment
CHAPTER 16 FINANCIAL LEVERAGE AND CAPITAL STRUCTURE POLICY Answers to Concepts Review and Critical Thinking Questions 1. Business risk is the equity risk arising from the nature of the firm’s operating activity‚ and is directly related to the systematic risk of the firm’s assets. Financial risk is the equity risk that is due entirely to the firm’s chosen capital structure. As financial leverage‚ or the use of debt financing‚ increases‚ so does financial risk and‚ hence‚ the overall
Premium Cash flow Stock Corporate finance
Pfizer Inc.’S Cost of Capital and Capital structure - Xiaoyue Shi The costs of capital and capital structures for Pfizer Inc. and its two competitors Merck & Co. Inc. and Johnson & Johnson in the pharmaceutical industry are analyzed in this memo. When calculating the cost of common stock for the three companies‚ three different approaches including Capital Asset Pricing Model (CAPM)‚ Discounted Cash Flow (DCF) and the bond yield plus risk premium are applied (Appendix A). For CAPM approach
Premium Stock market Stock Weighted average cost of capital