Page 349 - FM Integrated WorkBook STUDENT 2018-19
P. 349
Capital structure
Overview
Operating Company
Gearing value and
cost of
Financial capital
CAPITAL STRUCTURE
Theories Choice of
discount
rate
Traditional
Use of WACC Use of CAPM
M&M without
tax
Understanding
betas
M&M with tax
Using betas in
project
Problems of
high gearing appraisal
Pecking order
theory
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