Q: Capital Structure, Valuation and Cost of Capital lecture & readings

  1. How does financial structure differ from company’s capital structure?

  2. How does capital structure affect the value of the firm?

  3. Which two types of bankruptcy costs companies are exposed to? Explain each shortly.

  4. What kind of signal is the replacement of equity for loan? Name at least 2.

  5. If you use CAPM formula, how does the capital structure change affect the cost of equity? Explain using formulas.

  6. How can the share re-purchase affect the size of equity capital of the company?

  7. Why companies undertake share re-purchases? Name at least 3 reasons.


Viimati muudetud: Tuesday, 26. June 2018, 12.59 PM