Capital Structure

Capital Structure

Activity Context

This discussion helps you develop the skills to master the following course competencies:

• Apply the theories, models, and practices of finance to the financial management of the firm.
• Integrate financial analyses into general business management planning and decision making.

Activity Instruction

Select two of the many capital structure concepts such as Modigliani and Miller, Pecking Order Theory, leverage, and so on, and explain what each is as well as how it differs from the other concept you selected. Then, step back and discuss why it is important for managers or leaders to optimize their capital structure.

Post a substantive initial post by Thursday. Support your post as appropriate with the theories presented in this week's required reading.