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If an implemented alternative appears to not be working,what can managers do?
Capital Structure
Capital Structure refers to the mix of debt and equity financing a company uses to fund its operations and growth.
M&M Proposition I
A principle of corporate finance stating that, under certain conditions, the value of a company is not affected by how it is financed, regardless of whether the company is financed by debt or equity.
Value of the Firm
The total worth of a company based on its current market capitalization plus any debts, and minus any cash on the company's balance sheet.
Interest Tax Shield
The decrease in income tax liabilities due to permitted interest expense deductions.
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