Week 5 – Capital Structure

Assignment Steps

· Show research on the matter that is properly cited and referenced according to APA with references

· 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.

Week 5 – Capital Structure

Assignment Steps

· Show research on the matter that is properly cited and referenced according to APA with references

· 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.