Capital Structure Issues 3
Business and Finance risks related to capital structure 4
Modigliani and Miller’s [MM] capital-structure theory . 5
Criticisms of the MM model and assumptions . 5
Capital-structure evidence and implications . 6
Estimating the firm’s optimal capital-structure .. 8
Conclusion .. 10
Capital structure management is crucial in enhancing business sustainability. In that respect, as a business environment change, organizations seek to manage their balance between debt and equity application. In that respect, this analysis seeks to demonstrate the effects of capital structure on a business risk and returns. To achieve the objective, the analysis uses ...