About this document
Capital Structure Theories Explained by Layatmika Sahoo is a document available to read on EtoBox.
The document discusses various theories of capital structure and its impact on firm value. It covers the Modigliani-Miller (MM) view of capital structure irrelevance under certain assumptions as well as theories incorporating taxes. The MM hypothesis suggests firm value is independent of capital structure when there are perfect markets, homogeneous risk classes, no taxes or transaction costs. However, when corporate taxes are considered, debt provides a tax shield that increases firm value up to a theoretic
- Author
- Layatmika Sahoo
- Language
- EN