LECTURE15THE CAPITAL STRUCTURE DECISION培训教材.pptVIP

Irwin/McGraw-Hill;MM (Debt Policy Doesn’t Matter);Example - River Cruises - All Equity Financed;Example cont. 50% debt;Example - River Cruises - All Equity Financed - Debt replicated by investors;Weighted Average Cost of Capitalwithout taxes (traditional view);Weighted Average Cost of Capitalwithout taxes (MM view);Financial Risk - Risk to shareholders resulting from the use of debt. Financial Leverage - Increase in the variability of shareholder returns that comes from the use of debt. Interest Tax Shield- Tax savings resulting from deductibility of interest payments. ;Example - You o