Corporate Finance Ross  Westerfield  Jaffe

Slides:

Advertisements

Similar presentations

Chapter Outline 15.1 The Capital-Structure Question and The Pie Theory

Advertisements

Chapter Outline 26.1 What is Corporate Financial Planning?

Chapter Outline 12.1 The Cost of Equity Capital

20-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross Westerfield Jaffe Sixth Edition 20 Chapter Twenty Long-Term Debt Prepared.

31-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 31 Chapter Thirty One Financial.

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Capital Structure: Limits to the Use of Debt Chapter 15.

Capital Structure: Part 2 For 9.220, Term 1, 2002/03 02_Lecture20.ppt Student Version.

28-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 28 Chapter Twenty Eight Cash Management.

Advanced Corporate Finance Lecture 08.1 and 09 Capital Structure and Bond Valuation (Continued) Fall, 2010.

Corporate Finance Lecture 9.

Chapter McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 1 Introduction to Corporate Finance.

Finanças Nov 28. Topics covered  Agency cost of equity  Pecking order theory  MM model with personal taxes  How firms construct financial structure.

Chapter 4. We will want to answer questions about the firm’s n Liquidity n Efficient use of Assets n Leverage (financing) n Profitability.

© K. Cuthbertson and D. Nitzsche Figures for Chapter 11 VALUING FIRMS : CAPITAL STRUCTURE AND THE COST OF CAPITAL (Investments : Spot and Derivatives Markets)

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Corporate Finance 3e Ross, Thompson, Christensen, Westerfield and Jordan Slides.

27-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 27 Chapter Twenty Seven Short-Term.

29-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 29 Chapter Twenty Nine Credit Management.

FIN 614: Financial Management Larry Schrenk, Instructor.

30-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 30 Chapter Thirty Mergers and Acquisitions.

19-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 19 Chapter Nineteen Issuing Securities.

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved Corporate Finance Ross  Westerfield  Jaffe Seventh Edition.

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 2-0 Corporate Finance Ross  Westerfield  Jaffe Sixth Edition.

How MUCH Should A CORPORATION BORROW?

McGraw-Hill/Irwin Copyright © 2004by The McGraw-Hill Companies, Inc. All rights reserved Corporate Finance Ross  Westerfield  Jaffe Seventh Edition.

8-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 8 Chapter Eight Strategy and Analysis.

Click here for title Capital Structure: Limits to the Use of Debt.

Chapter 7: Making capital investment decisions Corporate Finance Ross, Westerfield, and Jaffe.

Limits to the Use of Debt

17-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 17 Chapter Seventeen Capital Budgeting.

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved Corporate Finance Ross  Westerfield  Jaffe Sixth Edition.

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. 9-0 Corporate Finance Ross  Westerfield  Jaffe Seventh Edition.

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 Corporate Finance Fifth Edition Ross Jaffe Westerfield Chapter 10 Return and Risk: The.

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved Corporate Finance Ross  Westerfield  Jaffe Sixth Edition.

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Corporate Finance 3e Ross, Thompson, Christensen, Westerfield and Jordan Slides.

1-0 Corporate Finance 1.1 Some important questions that are answered using finance What long-term investments should the firm take on? Where will we get.

0 Corporate Finance Ross  Westerfield  Jaffe Seventh Edition 1 Chapter One Introduction to Corporate Finance.

McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited 5-0 Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 5 Chapter Five How to Value Bonds.

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved Corporate Finance Ross  Westerfield  Jaffe Seventh Edition.

11-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 11 Chapter Eleven An Alternative.

9-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 9 Chapter Nine Capital Market Theory:

Contemporary Engineering Economics, 4 th edition, © 2007 Cost of Capital Lecture No. 61 Chapter 15 Contemporary Engineering Economics Copyright © 2006.

McGraw-Hill/Irwin Corporate Finance, 7/e © 2005 The McGraw-Hill Companies, Inc. All Rights Reserved CHAPTER 16 Capital Structure: Limits to the Use.

2-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 2 Chapter Two Accounting Statements.

22-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 22 Chapter Twenty Two Options and.

FUNDAMENTALS OF CORPORATE FINANCE

McGraw-Hill Ryerson 3-0 © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 3 Chapter Three Financial Markets.

CHAPTER SIXTEEN Capital Structure By J.D. Han. Evaluation of Capital Structures A capital structure that maximizes share prices generally will minimize.

24-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 24 Chapter Twenty Four Warrants.

1 Survey evidence on some of the factors that affect the decision to issue debt. The survey is based on the responses of 392 CFOs, conducted by John Graham.

McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited 1-0 Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 1 Chapter One Introduction to Corporate.

6-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 6 Chapter Six Some Alternative Investment.

Capital Structure II: Limits to the Use of Debt. Costs of Financial Distress Bankruptcy risk versus bankruptcy cost. The possibility of bankruptcy has.

16-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 16 Chapter Sixteen Capital Structure:

10-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 10 Chapter Ten The Capital Asset.

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Corporate Finance 3e Ross, Thompson, Christensen, Westerfield and Jordan Slides.

Chapter 16-The Financing Decision- Capital Structure Explain the concept of financial leverage and its potential effect on bondholders and on the return.

CHAPTER SIXTEEN Capital Structure By J.D. Han. Evaluation of Capital Structures A capital structure that maximizes share prices generally will minimize.

17-0 McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 17 Chapter Seventeen Capital Budgeting.

Chapter 16-The Financing Decision- Capital Structure

Corporate Finance Ross  Westerfield  Jaffe

Advanced Corporate Finance

FINA 4330 The Weighted Average Cost of Capital Lecture 21 Fall, 2010

The Financing Decision- Capital Structure

Capital Structure: Limits to the Use of Debt

Financial Management and Strategy

Corporate Finance Ronald F. Singer FINA 4330

Corporate Finance Ross  Westerfield  Jaffe

12 Capital Structure Concepts.

Hu - Financing Decision I

Corporate Finance Ross  Westerfield  Jaffe

Presentation transcript:

Corporate Finance Ross  Westerfield  Jaffe Sixth Edition 16 Chapter Sixteen Capital Structure: Limits to the Use of Debt Prepared by Gady Jacoby University of Manitoba and Sebouh Aintablian American University of Beirut

Chapter Outline 16.1 Costs of Financial Distress 16.2 Description of Costs 16.3 Can Costs of Debt Be Reduced? 16.4 Integration of Tax Effects and Financial Distress Costs 16.5 Shirking, Perquisites, and Bad Investments: A Note on Agency Cost of Equity 16.6 The Pecking-Order Theory 16.7 Growth and the Debt-Equity Ratio 16.8 Personal Taxes 16.9 How Firms Establish Capital Structure 16.10 Summary and Conclusions