Discuss the relation of a firm capital structure

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Discuss the relation of a firm's capital structure and its firm value.

How does additional debt in a firm influence its WACC? its free cash flow (FCF)? the agency costs of the firm?

What's asymmetric information? What is signaling theory? Use real-world examples to explain these theories.

If the information asymmetry doesn't exist, does the signaling theory hold? if the signaling theory does not work, does the information asymmetry hold?

What is a firm's business risk? What is a firm's operating leverage? How does the operating leverage affect the firm's business risk?

What is the relationship of business risk, financial risk, and stand-alone risk? How to calculate the financial risk for a firm?

How can a firm's financial leverage boost its return to common shareholders (ROE)? Use an example to explain it.

What is MM theory with zero taxes? with corporate taxes? Any differences?

What is Miller's theory with both corporate and personal taxes? When is Miller's model the same as MM model with corporate taxes?

How to estimate a firm's optimal capital structure?

What is Hamada's equation? How to find a levered beta? How to use Hamada's equation to find an unlevered beta?

Analyze GNC's financial leverage before the firm filed bankruptcy in 2020? Was the high financial leverage responsible for the bankruptcy of the firm?

The interest rate was cut to near zero in 2020. Has your company, or any other company that you know, changed its capital structure accordingly?

Compare the financial leverage (i.e. measured by total debt ratio = total debt / total assets) for APPLE (high-tech), Kroger (retail), and Wells Fargo (bank).

If a company is currently financed by 30% of debt and 70% of equity. The CFO of the firm wants to increase the debt ratio to 40%. How to achieve the goal?

Analyze the impact of recent economic recovery on corporate financial leverage and capital structure.

Discuss the long-term consequence of the budget deficit policy by federal government.

What's the difference between net working capital and net operating working capital? Which one is used for the corporate valuation model?

What is the working capital management policy in a company? Why is it so important for the firm?

Do you know any cases of successful real-world working capital management?

What does CCC mean? How to calculate CCC?

Why do some companies hold a large amount of cash on balance sheets even when they know cash has no return?

What's the general goal of a firm's cash management?

Reference no: EM132948789

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