Capital Structure can be described as the appropriate amount of debt and equity which is used to finance a firm. There are lots of theories that speak about changes in the debt ratios along with capital structure and the changes in the ratios of firms which might appeal to be irrelevant to capital structure (Modgliani & Miller 1958). This was proposed by them to all of the related theories to capital structure. Bevan and Danbolt (2002) states that short-term debt unites with the structure of the firm when the firm concentrates on long-term debt resulting in yield of limited explanatory power.
Showing posts with label Modgliani and Miller. Show all posts
Showing posts with label Modgliani and Miller. Show all posts
16 Apr 2012
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