LEVERAGE AND CAPITAL STRUCTURE. Business Risk and Financial Risk Risk – the likely variability associated with expected revenue streams. Risk – the likely.
CHAPTER 4 MEASURES OF LEVERAGE Presenter’s name Presenter’s title dd Month yyyy.
Capital Structure and Leverage Chapter 14 Business vs. Financial Risk Optimal Capital Structure Operating Leverage Capital Structure Theory 14-1.
16 - 1 Copyright © 2002 by Harcourt, Inc.All rights reserved. CHAPTER 16 Capital Structure Decisions: The Basics Impact of leverage on returns Business.
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4. Capital Structure 2
4. Capital Structure
Capital Structure Decisions Business vs. financial risk Capital structure theory.
16 - 1 CHAPTER 16-7 Capital Structure Decisions: The Basics (Short version) Business vs. financial risk Capital structure theory Setting the optimal capital.
1. Learning Outcomes Chapter 12 Describe how business risk and financial risk can affect a firm’s capital structure. Describe how businesses determine.
Lecture 9 - Capital Structure Decisions. 2 Basic Definitions V = value of firm FCF = free cash flow WACC = weighted average cost of capital r s and r.
Chapter 9 Capital Structure © 2005 Thomson/South-Western.
