Capital Structure Theory – Traditional Approach The traditional approach to capital structure suggests an optimal debt to equity ratio where the overall cost of capital is the minimum and the… Read Article
Capital Structure Theory – Net Operating Income Approach Net Operating Income Approach to capital structure believes that the value of a firm is not affected by the change of debt component in… Read Article
Capital Structure Theory – Net Income Approach The Net Income Approach suggests that the value of the firm can be increased by decreasing the overall cost of capital (WACC) through a… Read Article