11. The Corporate Financing Decision

  1. Frank J. Fabozzi and
  2. Pamela Peterson Drake

Published Online: 29 NOV 2011

DOI: 10.1002/9781118266984.ch11

Finance: Capital Markets, Financial Management, and Investment Management

Finance: Capital Markets, Financial Management, and Investment Management

How to Cite

Fabozzi, F. J. and Drake, P. P. (2009) The Corporate Financing Decision, in Finance: Capital Markets, Financial Management, and Investment Management, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118266984.ch11

Publication History

  1. Published Online: 29 NOV 2011
  2. Published Print: 26 MAY 2009

ISBN Information

Print ISBN: 9780470407356

Online ISBN: 9781118266984

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Keywords:

  • corporate financing decision;
  • plant and equipment;
  • ownership interests;
  • investment opportunities;
  • creditors

Summary

This chapter contains sections titled:

  • Debt vs. Equity

  • The concept of leverage

  • Capital Structure and Financial Leverage

  • Financial Leverage and Risk

  • Capital Structure and Taxes

  • Capital Structure and Financial Distress

  • The Cost of Capital

  • The Agency Relationship and Capital Structure

  • Optimal Capital Structure: Theory and Practice

  • A Capital Structure Prescription

  • Summary

  • Appendix: Capital structure: Lessons from Modigliani and Miller