Part 4:Capital Structure and Dividend Policy

Chapter 17
Capital structure and the value of the firm

Capital structure and corporate taxation
Capital structure, corporate taxation and personal taxes
Is there really an advantage to debt?

I have combined the materials for these two chapters in one PPT.

PPT for Chapters 17 and 18

See also materials previously developed.


Chapter 18
The evidence on capital structure

Summarizing the theory
How do firms capitalize?
Measuring a firmís asset beta (
bAssets) and WACC
Computing the asset beta (
bAssets)for the grocery industry
Academic evidence

Chapter 19
Dividend policy

The financial theory of dividends
Taxes can make a big difference
Dividends versus capital gains
Do dividends signal?
What do corporate executives think about dividends?

PPT for Chapter 19