• Welcome to "Capital Structure Decisions!"  The module investigates how to use financial decision making to improve (or protect) firm value. This introductory section provides an overview of the structure of the module.


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    The main learning goals of this module are:
    • Learn how to use financial decision making to improve firm value.
    • Understand how and why the firm's capital structure (debt-equity mix) matters.
    • Learn how a firm can adjust its capital structure.
    • Understand the implication for debt and equity valuation.
    • Know the key considerations behind an optimal capital structure.

      The following page summarizes the logic of the module: