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Ch 6

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Gaurav Muliya
Gaurav Muliya
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Capital Structure Theories
In this chapter… ,[object Object],[object Object],[object Object],[object Object],[object Object]
Capital Structure… ,[object Object],[object Object],[object Object],[object Object]
Optimal Capital Structure… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Determinants / Factors affecting Capital Structure… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Patterns of Capital Structure… ,[object Object],[object Object],[object Object],[object Object]
EBIT – EPS Approach… ,[object Object]
ROI – ROE Approach… ,[object Object]
Theories of Capital Structure… ,[object Object],[object Object],[object Object],[object Object]
Assumptions of Capital Structure Theories… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Definitions used in Capital Structure… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Net Income Approach… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Net Income Approach…
Formula used for NI Approach… ,[object Object],[object Object],[object Object],[object Object]
Net Operating Income Approach… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Net Operating Income Approach…
Formula used for NOI Approach… ,[object Object],[object Object],[object Object]
MM Hypothesis… ,[object Object],[object Object]
Assumptions… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Propositions: ,[object Object],[object Object],[object Object],[object Object]
MM Approach [Proposition I] arbitrage Progress: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Limitations of MM Approach… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Traditional Approach… ,[object Object],[object Object],[object Object]
Main Prepositions… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Ch 6