Assignment: Capital Structure
Steps
· Create a substantive message would include a personal or professional experience as it relates to the theory, please provide examples.
· Word count of each substantive participation 100-150 words of each one of the following subjects:
1. Describe an efficient capital market for stocks.
2. Compare and contrast the weak form of market efficiency with the strong and semi-strong forms.
3. Explain the relevance of market efficiency for financial managers.
4. Distinguish how maximizing the value of the corporation differs from maximizing shareholder interests.
5. Explain how leverage can improve returns to the shareholders.
6. Describe the impact of corporate taxes on the weighted average cost of capital.
7. Distinguish between direct and indirect costs in a corporate bankruptcy.
8. Describe agency costs and the impact on bondholders.
9. Explain the application and implications of the pecking-order theory.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.