tailieunhanh - Lecture Contemporary financial management (9th Edition): Chapter 12 - Moyer, McGuigan, Kretlow

Lecture Contemporary financial management (9th Edition) - Chapter 12: Capital structure concepts. This chapter examines some of the basic concepts used in determining a firm’s optimal capital structure. It deals only with the total permanent sources of a firm’s financing. | 12 Capital Structure Concepts Introduction This chapter examines some of the basic concepts used in determining a firm’s optimal capital structure. It deals only with the total permanent sources of a firm’s financing. Capital Structure vs. Financial Structure Capital Structure Permanent S-T debt L-T debt P/S C/S Financial Structure Total current liabilities L-T debt P/S C/S Capital Structure vs. Financial Structure Capital structure is defined as the amount of permanent short-term debt, long-term debt, preferred stock, and common equity used to finance a firm. Financial structure refers to the amount of total current liabilities, long-term debt, preferred stock, and common equity used to finance a firm. Capital Structure vs. Financial Structure Capital structure is part of the financial structure, representing the permanent sources of the firm’s financing. Capital Structure Terminology Optimal capital structure Minimizes a firm’s weighted average cost of capital Maximizes the value of the firm Target capital structure Capital structure at which the firm plans to operate Debt capacity Amount of debt contained in a firm’s optimal capital structure Capital Structure Terminology The optimal capital structure and, accordingly, the debt capacity of a firm are determined by the following factors: Business risk of the firm Tax structure Extent of potential financial distress (., bankruptcy) Agency costs Role played by capital structure policy in providing signals to the capital markets regarding the firm’s performance Capital Structure Assumptions It is assumed that a firm’s investment policy is held constant when we examine the effects of capital structure changes on firm value and particularly on the value of common stock, which means that the level and variability of EBIT is not expected to change as changes in capital structure are contemplated. Capital Structure Assumptions Capital structure changes affect only distribution of the operating income between the . | 12 Capital Structure Concepts Introduction This chapter examines some of the basic concepts used in determining a firm’s optimal capital structure. It deals only with the total permanent sources of a firm’s financing. Capital Structure vs. Financial Structure Capital Structure Permanent S-T debt L-T debt P/S C/S Financial Structure Total current liabilities L-T debt P/S C/S Capital Structure vs. Financial Structure Capital structure is defined as the amount of permanent short-term debt, long-term debt, preferred stock, and common equity used to finance a firm. Financial structure refers to the amount of total current liabilities, long-term debt, preferred stock, and common equity used to finance a firm. Capital Structure vs. Financial Structure Capital structure is part of the financial structure, representing the permanent sources of the firm’s financing. Capital Structure Terminology Optimal capital structure Minimizes a firm’s weighted average cost of capital Maximizes the value of

• Quản trị kinh doanh
• Financial mnagement
• Contemporary financial management
• Quản lý tài chính
• Quản lý tài chính hiện đại
• Lecture Contemporary financial management
• Capital structure
• International financial marketplace
• Financial performance
• Business organizations
• Time value of money
• Analysis of risk
• Long term debt
• Preferred stock
• Common stock
• Capital budgeting
• Cost of capital
• Capital structure management
• Dividend policy
• Financing with derivatives