SlideShare a Scribd company logo
1 of 18
CAPITAL STRUCTURE
What is “Capital Structure”? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial Structure
What is “Capital Structure”? ,[object Object],Current  Current   Assets   Liabilities   Debt Fixed     P reference  shares Assets     Ordinary   shares   Capital Structure
Definition ,[object Object],[object Object],[object Object]
Why is it important? ,[object Object],[object Object]
Factors affecting capital structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Assumptions Of Capital Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Theories ,[object Object],[object Object],[object Object]
Net Income (NI) Approach ,[object Object],[object Object],[object Object]
Assumptions of NI Theory ,[object Object],[object Object],[object Object]
Net Operating Income (NOI) Approach ,[object Object],[object Object],[object Object]
Assumptions of NOI Theory ,[object Object],[object Object],[object Object],[object Object]
MM Approach Without Tax: Proposition I ,[object Object]
MM Approach Without Tax: Proposition II ,[object Object]
MM Hypothesis With Corporate Tax ,[object Object],[object Object]
Assumptions of M-M Approach ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Traditional Theory ,[object Object],[object Object],[object Object]
Features of an Appropriate Capital Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

More Related Content

What's hot

Dividend policy ppt
Dividend policy  pptDividend policy  ppt
Dividend policy ppt
Aayush Kumar
 
Capital structure and firm valuation by anil dora
Capital structure and firm valuation by anil doraCapital structure and firm valuation by anil dora
Capital structure and firm valuation by anil dora
Anil Dora
 
Risk and Return
Risk and ReturnRisk and Return
Risk and Return
saadiakh
 

What's hot (20)

Capital structure ppt
Capital structure pptCapital structure ppt
Capital structure ppt
 
Cost of capital
Cost of capitalCost of capital
Cost of capital
 
Dividend policy
Dividend policyDividend policy
Dividend policy
 
Capital structure-theories
Capital structure-theoriesCapital structure-theories
Capital structure-theories
 
Cost of capital
Cost of capitalCost of capital
Cost of capital
 
Dividend theories
Dividend theoriesDividend theories
Dividend theories
 
Capital structure
Capital structureCapital structure
Capital structure
 
valuation of securities
valuation of securitiesvaluation of securities
valuation of securities
 
Capital structure ppt
Capital structure pptCapital structure ppt
Capital structure ppt
 
Capital structure theories notes
Capital structure theories notesCapital structure theories notes
Capital structure theories notes
 
Leverage (Operating, financial & combined leverage)
Leverage (Operating, financial & combined leverage)Leverage (Operating, financial & combined leverage)
Leverage (Operating, financial & combined leverage)
 
Capital structure
Capital structureCapital structure
Capital structure
 
Cost of capital
Cost of capitalCost of capital
Cost of capital
 
cost of capital
cost of capitalcost of capital
cost of capital
 
Net income approach
Net income approachNet income approach
Net income approach
 
Dividend policy ppt
Dividend policy  pptDividend policy  ppt
Dividend policy ppt
 
Cost of capital akp ppt
Cost of capital akp pptCost of capital akp ppt
Cost of capital akp ppt
 
Capital structure and firm valuation by anil dora
Capital structure and firm valuation by anil doraCapital structure and firm valuation by anil dora
Capital structure and firm valuation by anil dora
 
Risk and Return
Risk and ReturnRisk and Return
Risk and Return
 
Weighted average cost of capital
Weighted average cost of capitalWeighted average cost of capital
Weighted average cost of capital
 

Viewers also liked

Purpose of share market
Purpose of share marketPurpose of share market
Purpose of share market
saravanan
 
Term 1 presentation added
Term 1 presentation addedTerm 1 presentation added
Term 1 presentation added
John Phelan
 
Capital Structure
Capital StructureCapital Structure
Capital Structure
yashpal01
 
5 capital structure-theories
5 capital structure-theories5 capital structure-theories
5 capital structure-theories
Dr. Abzal Basha
 
Capital Structure Theory
Capital Structure TheoryCapital Structure Theory
Capital Structure Theory
piyooshtripathi
 

Viewers also liked (14)

Purpose of share market
Purpose of share marketPurpose of share market
Purpose of share market
 
Term 1 presentation added
Term 1 presentation addedTerm 1 presentation added
Term 1 presentation added
 
Veo un molino
Veo un molinoVeo un molino
Veo un molino
 
Financial management
Financial management Financial management
Financial management
 
Corporate Finance – A Study On Idea Cellular
Corporate Finance – A Study On Idea CellularCorporate Finance – A Study On Idea Cellular
Corporate Finance – A Study On Idea Cellular
 
Ch 15
Ch 15Ch 15
Ch 15
 
Capital Structure
Capital StructureCapital Structure
Capital Structure
 
Personality: Meaning & Determinants
Personality: Meaning & Determinants Personality: Meaning & Determinants
Personality: Meaning & Determinants
 
Types of capital
Types of capitalTypes of capital
Types of capital
 
Dividend policy
Dividend policyDividend policy
Dividend policy
 
Share capital
Share capitalShare capital
Share capital
 
Share and share capital
Share and share capitalShare and share capital
Share and share capital
 
5 capital structure-theories
5 capital structure-theories5 capital structure-theories
5 capital structure-theories
 
Capital Structure Theory
Capital Structure TheoryCapital Structure Theory
Capital Structure Theory
 

Similar to Capital structure defenition

Capitalstructuredefenition 100426194038-phpapp02
Capitalstructuredefenition 100426194038-phpapp02Capitalstructuredefenition 100426194038-phpapp02
Capitalstructuredefenition 100426194038-phpapp02
AJITH MK
 
Chapter-1-Capital Structure Policy and Leverage.pptx
Chapter-1-Capital Structure Policy and Leverage.pptxChapter-1-Capital Structure Policy and Leverage.pptx
Chapter-1-Capital Structure Policy and Leverage.pptx
AbdiMuceeTube
 
196.capital structure intro lecture 1
196.capital structure intro lecture 1196.capital structure intro lecture 1
196.capital structure intro lecture 1
kitturashmikittu
 

Similar to Capital structure defenition (20)

Capitalstructuredefenition 100426194038-phpapp02
Capitalstructuredefenition 100426194038-phpapp02Capitalstructuredefenition 100426194038-phpapp02
Capitalstructuredefenition 100426194038-phpapp02
 
3 capital structure
3 capital structure3 capital structure
3 capital structure
 
Bf chapter 3
Bf chapter 3Bf chapter 3
Bf chapter 3
 
capital_structure.ppt
capital_structure.pptcapital_structure.ppt
capital_structure.ppt
 
Capital structure theories.pptx
Capital structure theories.pptxCapital structure theories.pptx
Capital structure theories.pptx
 
Capital structure theories - NI Approach, NOI approach & MM Approach
Capital structure theories - NI Approach, NOI approach & MM ApproachCapital structure theories - NI Approach, NOI approach & MM Approach
Capital structure theories - NI Approach, NOI approach & MM Approach
 
capital_structure.pptx
capital_structure.pptxcapital_structure.pptx
capital_structure.pptx
 
Cost of capital
Cost of capitalCost of capital
Cost of capital
 
Financial management ppt
Financial management pptFinancial management ppt
Financial management ppt
 
Ppt financial management
 Ppt financial  management  Ppt financial  management
Ppt financial management
 
Capital Structure
Capital StructureCapital Structure
Capital Structure
 
Ch 6
Ch 6Ch 6
Ch 6
 
Chapter-1-Capital Structure Policy and Leverage.pptx
Chapter-1-Capital Structure Policy and Leverage.pptxChapter-1-Capital Structure Policy and Leverage.pptx
Chapter-1-Capital Structure Policy and Leverage.pptx
 
196.capital structure intro lecture 1
196.capital structure intro lecture 1196.capital structure intro lecture 1
196.capital structure intro lecture 1
 
Financial Management - An overview
Financial Management - An overviewFinancial Management - An overview
Financial Management - An overview
 
ch 12 cost of capital.pdf
ch 12 cost of capital.pdfch 12 cost of capital.pdf
ch 12 cost of capital.pdf
 
Economic value-added 2
Economic value-added 2Economic value-added 2
Economic value-added 2
 
Cost of capital and capital structure
Cost  of capital and capital structureCost  of capital and capital structure
Cost of capital and capital structure
 
Capital structure -Nuances of Debt vs Equity
Capital structure -Nuances of Debt vs EquityCapital structure -Nuances of Debt vs Equity
Capital structure -Nuances of Debt vs Equity
 
Capital structure decisions
Capital structure decisionsCapital structure decisions
Capital structure decisions
 

More from saravanan (20)

Green collar job
Green collar jobGreen collar job
Green collar job
 
Logo round
Logo roundLogo round
Logo round
 
Logo round
Logo roundLogo round
Logo round
 
The one
The oneThe one
The one
 
Marketing scope
Marketing scopeMarketing scope
Marketing scope
 
Direct tax code
Direct tax codeDirect tax code
Direct tax code
 
Stock market basic
Stock market basicStock market basic
Stock market basic
 
Something special
Something specialSomething special
Something special
 
Basic terms
Basic termsBasic terms
Basic terms
 
Capital structure defenition
Capital structure defenitionCapital structure defenition
Capital structure defenition
 
Web 2.0
Web 2.0Web 2.0
Web 2.0
 
Tr
TrTr
Tr
 
Top paid ceos of india
Top paid ceos of indiaTop paid ceos of india
Top paid ceos of india
 
S teve jobs
S teve jobsS teve jobs
S teve jobs
 
Spoken english
Spoken englishSpoken english
Spoken english
 
Six sigma in customer satisfaction
Six sigma in customer satisfactionSix sigma in customer satisfaction
Six sigma in customer satisfaction
 
Management monsters
Management monstersManagement monsters
Management monsters
 
Interview is
Interview isInterview is
Interview is
 
Forex
ForexForex
Forex
 
Dolphin anna university
Dolphin anna universityDolphin anna university
Dolphin anna university
 

Capital structure defenition