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28 sty 2017 · Purpose of this study is to review various capital structure theories that have been proposed in the finance literature to provide clarification for the firms’ capital structure decision.
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Purpose of this study is to review various capital structure...
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The Modigliani and Miller approach to capital theory, advocates the capital structure irrelevancy theory.
Capital structure is understood as the relationship between equity and debt capital of the company. Does capital structure affect the company’s main settings, such as the cost of capital, profit, value of the company, and the others, and, if it affects, how?
1 sty 2015 · This group includes the MM model of Franco Modigliani and Merton Miller, the traditional approach represented by the work of H. DeAngelo, L. Dodd, D. Durand, R.W. Masulis, B. Graham and other classics of the capital structure.
One of the two main theories of capital cost and capital structure is the theory of Nobel Prize winners Modigliani and Miller (1958, 1963, 1966). In this chapter, we describe the main results of this theory. Under the capital structure, one understands the relationship between equity and debt capital of the company.
From these assumptions there are three basic: (1) the tax benefits of gearing, (2) bankruptcy costs and (3) asymmetric information; and the four major capital structure theories that based on these assumptions are: (1) the trade-off, (2) pecking order, (3) market timing, and (4) free cash-flow theories.
5 gru 2020 · Capital structure is understood as the relationship between equity and debt capital of the company. Does capital structure affect the company’s main settings, such as the cost of capital, profit, value of the company, and the others, and, if it affects, how?
