When there are no taxes and capital markets function well. it makes no difference whether the firm borrows or individual shareholders borrow. Therefore. the market value of a company does not depend on its capital structure
Geothermal's Cost of Capital Weighted Average Cost of Capital (WACc) Capital Structure Required Rates of Return Big Oil's WACC SInterpreting WACC Flotation Costs
Investment Decision vs. Financing Decision Market Efficiency Weak form efficiency Semi- -strong form efficiency Strong form efficiency Lessons of Market Efficiency
Topics Covered Net Present value ther Investment Criteria Project Interactions Capital Rationing IrwinMcGraw-Hill The McGraw-Hill Companies, Inc., 2001