Explain what asymmetric information means and what a new stock issue tends to signal. How does the tax deductibility of interest affect the optimal target capital structure?
Assignment for Chap. 14: Capital Structure and Leverage Finding or figuring out the answers to the following questions is the only way to learn the concepts of capital structure and leverage. Just reading the chapter and my summary lecture won’t do it. Part I: Use your own words to explain the terms in ST-1. Make […]