Corporate Finance

  1. Capital Structure: Financing Decisions
    1. Long-Term Financing
      1. Equity Financing
        1. Common Stock
          1. Characteristics
            1. Advantages and Disadvantages
            2. Preferred Stock
              1. Types of Preferred Stock
                1. Advantages and Disadvantages
                2. Retained Earnings
                3. Debt Financing
                  1. Bonds
                    1. Types of Bonds
                      1. Bond Features
                      2. Bank Loans
                        1. Term Loans
                          1. Credit Lines
                          2. Leases
                            1. Operating Leases
                              1. Financial Leases
                            2. Hybrid Securities
                              1. Convertible Bonds
                                1. Warrants
                              2. Capital Structure Concepts
                                1. Financial Leverage
                                  1. Impact on Earnings
                                    1. Impact on Risk
                                      1. Degree of Financial Leverage
                                      2. Homemade Leverage
                                        1. Business Risk vs. Financial Risk
                                        2. Capital Structure Theory
                                          1. Modigliani-Miller Propositions
                                            1. M&M Proposition I (No Taxes)
                                              1. M&M Proposition II (No Taxes)
                                                1. M&M Propositions with Corporate Taxes
                                                  1. M&M Propositions with Personal Taxes
                                                  2. The Trade-Off Theory of Capital Structure
                                                    1. Tax Shield Benefits
                                                      1. Costs of Financial Distress
                                                        1. Direct Bankruptcy Costs
                                                          1. Indirect Bankruptcy Costs
                                                          2. Optimal Capital Structure
                                                          3. The Pecking Order Theory
                                                            1. Information Asymmetry
                                                              1. Financing Hierarchy
                                                                1. Implications for Capital Structure
                                                                2. Market Timing Theory
                                                                  1. Agency Cost Theory
                                                                  2. Determining the Optimal Capital Structure
                                                                    1. Factors Influencing Capital Structure
                                                                      1. Business Risk
                                                                        1. Tax Position
                                                                          1. Financial Flexibility
                                                                            1. Managerial Conservatism
                                                                              1. Growth Opportunities
                                                                              2. Industry Practices
                                                                                1. Empirical Evidence on Capital Structure

                                                                              Previous

                                                                              6. Capital Budgeting: Investment Decisions

                                                                              Go to top

                                                                              Next

                                                                              8. Payout Policy