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CHAPTER 14 Capital Structure and Leverage, NAMA : Safira Mayang Retnaning…
CHAPTER 14
Capital Structure and Leverage
Business and Financial Risk
OPERATING LEVERAGE
FINANCIAL RISK
BUSINESS RISK
FACTORS THAT AFFECT BUSINESS RISK
Input cost variability
Product obsolescence
Sales price variability
Foreign risk exposure
Demand variability
Regulatory risk and legal exposure.
Competition
The extent to which costs are fixed: operating leverage
Book, Market, or “Target” Weights?
MEASURING THE CAPITAL STRUCTURE
CAPITAL STRUCTURE CHANGES OVER TIME
Deliberate actions
Market actions
Determining the Optimal Capital Structure
THE HAMADA EQUATION
THE OPTIMAL CAPITAL STRUCTUR
WACC AND CAPITAL STRUCTURE CHANGES
Capital Structure Theory
SIGNALING THEORY
USING DEBT FINANCING TO CONSTRAIN MANAGERS
TRADE-OFF THEORY
PECKING ORDER HYPOTHESIS
THE EFFECT OF POTENTIAL BANKRUPTCY
WINDOWS OF OPPORTUNITY
THE EFFECT OF TAXES
Checklist for Capital Structure Decisions
Growth rate
Profitability
Operating leverage.
Taxes
Asset structure
Control.
Sales stability
Management attitudes
Lender and rating agency attitudes.
Market conditions
The firm’s internal condition.
Financial flexibility
Variations in Capital Structures
NAMA : Safira Mayang Retnaning Dyah
NIM : 042111333109
Kelas : Manajemen Keuangan (A-SP)
