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Capital Structure and Gearing

C/F/661. Impact of capital structure on the value of company

WORDS:
3000
DATE:
2010
PRICE:
39.99 GBP

The paper looks at the methods of company valuation for private and public companies discussing the impact of the capital structure on the company value, and making references to the financial theory formulated by Modigliani and Miller. Practical implications of the optimal capital structure are considered concluding that strong business models and stable cash flows remain basic factors behind companies’ success.

 

KEYWORDS: Capital structure, Modigliani and Miller, company valuation, financial theory,