Capital Structure Discussion questions

User Generated

Nevrynw5

Business Finance

Description

Answer these in at least 100 words per question.

  • Describe an efficient capital market for stocks?
  • Compare and contrast the weak form of market efficiency with the strong and semi-strong forms?
  • Explain the relevance of market efficiency for financial managers?
  • Distinguish how maximizing the value of the corporation differs from maximizing shareholder interests?
  • Explain how leverage can improve returns to the shareholders?
  • Describe the impact of corporate taxes on the weighted average cost of capital?
  • Distinguish between direct and indirect costs in a corporate bankruptcy?
  • Describe agency costs and the impact on bondholders?

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Anonymous
I was struggling with this subject, and this helped me a ton!

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