CHAPTER 16CAPITAL STRUCTUREObjectives To understand how a firm can create value through its financing decisions. To show how to take account of a firms financing mix in evaluating investment decisions.Outline16.1Internal versus External Financing16.2Equity Financing16.3Debt Financing16.4The Irrelevance of Capital Structure in a Frictionless Environment16.5Creating Value through Financing Decisions16.6Reducing Costs16.7Dealing with Conflicts of Interest16.8
