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Talk:Trade-off theory of capital structure

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Incorrect graph

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The graph on this page is incorrect. The top red line (the value of the firm excluding PV of costs of distress) should be asymptotic to a horizontal line that represents the maximum theoretical value of the firm at 99.99999% debt financing. The graph on this page shows this line incorrectly dipping down as D/E approaches 100%. Apauza 03:32, 10 August 2007 (UTC)[reply]

Earlier References

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There is an earlier paper than those cited that discusses the effects of taxes, bankruptcy and agency issues of Modigliani and Miller's theory of optimal capital structure. This paper describes the basic idea behind the trade-off theory.

Robichek, A. A., & Myers, S. C. (1966). Problems in the theory of optimal capital structure. Journal of Financial & Quantitative Analysis, 1(2), 1-35. --MikeInRacine (talk) 04:35, 16 November 2011 (UTC)[reply]

Requested move

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The following discussion is an archived discussion of a requested move. Please do not modify it. Subsequent comments should be made in a new section on the talk page. No further edits should be made to this section.

The result of the move request was: moved. ErikHaugen (talk | contribs) 06:59, 8 January 2012 (UTC)[reply]


Trade-Off Theory of Capital StructureTrade-off theory of capital structure

Per WP:MOSCAPS ("Wikipedia avoids unnecessary capitalization") and WP:TITLE, this is a generic, common term, not a propriety or commercial term, so the article title should be downcased. WP does not normally cap theories, theorems, models, laws, etc. Lowercase will match the formatting of related article titles. Tony (talk) 11:42, 29 December 2011 (UTC)[reply]

The above discussion is preserved as an archive of a requested move. Please do not modify it. Subsequent comments should be made in a new section on this talk page. No further edits should be made to this section.