Continued... O Capital Structure Assumptions Firm's investment policy is held constant Capital structure changes the distribution of the firm's EBIT among the firm's claimants Debtholders Preferred stockholders Common stockholders Constant investment policy leaving the debt capacity of the firm unchanged 渊外经价货多六居 YO年NEB证事0000Continued… zCapital Structure Assumptions – Firm’s investment policy is held constant – Capital structure changes the distribution of the firm’s EBIT among the firm’s claimants Debtholders Preferred stockholders Common stockholders – Constant investment policy leaving the debt capacity of the firm unchanged