Slide MGT204 Slide15

15-1

Chapter Fifteen

Capital Structure:
Basic
Corporate
Finance
Ross Westerfield Jaffe
Concepts




15

Sixth Edition

Prepared by
Gady Jacoby
University of Manitoba

and
Sebouh Aintablian
American University of
Beirut
McGraw-Hill Ryerson

© 2003 McGraw–Hill Ryerson Limited

15-2

Chapter Outline
15.1 The Capital-Structure Question and The Pie Theory
15.2 Maximizing Firm Value versus Maximizing
Stockholder Interests
15.3 Financial Leverage and Firm Value: An Example
15.4 Modigliani and Miller: Proposition II (No Taxes)
15.5 Taxes
15.6 Summary and Conclusions

McGraw-Hill Ryerson

© 2003 McGraw–Hill Ryerson Limited