2009•Unpublished venueRequires access

The Corporate Financing Decision

Frank J. Fabozzi, Pamela Peterson Drake

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Abstract

This chapter contains sections titled: Debt vs. Equity The concept of leverage Capital Structure and Financial Leverage Financial Leverage and Risk Capital Structure and Taxes Capital Structure and Financial Distress The Cost of Capital The Agency Relationship and Capital Structure Optimal Capital Structure: Theory and Practice A Capital Structure Prescription Summary Appendix: Capital structure: Lessons from Modigliani and Miller

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What this paper is about

This chapter contains sections titled: Debt vs. Equity The concept of leverage Capital Structure and Financial Leverage Financial Leverage and Risk Capital Structure and Taxes Capital Structure and Financial Distress The Cost of Capital The Agency Relationship and Capital Structure Optimal Capital Structure: Theory and Practice A Capital Structure Prescription Summary Appendix: Capital structure: Lessons from Modigliani and Miller

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Available abstract

This chapter contains sections titled: Debt vs. Equity The concept of leverage Capital Structure and Financial Leverage Financial Leverage and Risk Capital Structure and Taxes Capital Structure and Financial Distress The Cost of Capital The Agency Relationship and Capital Structure Optimal Capital Structure: Theory and Practice A Capital Structure Prescription Summary Appendix: Capital structure: Lessons from Modigliani and Miller

Key concepts: Capital structure, Cost of capital, Financial capital, Leverage (statistics), Economic capital, Debt-to-capital ratio, Agency cost, Capital adequacy ratio

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