part or in full,
during assessments
FMAA MONASH ADVANCED CORPORATE FINANCE
STUDY GUIDE
CAPITAL STRUCTURE
Capital structure theory
Capital structure is the mix of a company’s debt (D) and equity (E). Optimal capital structures, that
maximise company value, exist for companies that operate within imperfect capital markets.
Business risk, or systematic risk, is the risk that arises from the operation of a company’s assets to
generate operating cash flows and it is borne equally by holders of company E…
Words 2032 - Pages 9