Solution-Concept of the irrelevance of the capital structure

Concept of the irrelevance of the capital structure

Reference no: EM132757863

Please answer the following questions:

(a) Define the optimal capital structure and how the capital structure is related to the value of a firm. What is the concept of the irrelevance of the capital structure as per Modigliani and Miller Proposition 1?

(b) Keeping in view the Trade-off theory and the Pecking Order theory, how should we take the capital structure decisions?

Reference no: EM132757863

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Concept of the irrelevance of the capital structure

Reference no: EM132757863

Reference no: EM132757863

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