Nave Umae [aes Sort
Reg,.No:
: Boll --ay- 3343-
SuBiecr:
CoeporaTE Frnancé:A son goes h
Capital Structure theory:
Net mame approach
a- Net pesaleg income approach
= Madiqhaa~ Miller gpprudh (4M approach)
4- Tad Yonall appiaach
Met incane wppreach:
Accerclns ~ 4s yypitech
tl Strochve Hision is aatie
Ughtaken 4 jn 4 igher Abt conte? in cgath Z
stuchre wll rel! in Aecline_ in fhe cverall
Or weight QV ast a i tell a well
Wekeae. Ti voll dy a 7 conspeonty (néseax
in yale g ey Shares 4d aoa
[veloe 9 fem= Mx Me ]
=<
a Mes Laming availehle Jeg. shareholers
> ¢
WG tm 2 AE
2
z Ko 5 overall cost 9 apital
a
a- Net Gperaling income approach:
ys Aecarchrg te tis he 7'
ae Velie 4 pum. inet tah. oe fed.
Hy goth stocker Charger: The market wale
te
Z je i aocerfain bt capifale
oy opele: aR neaome. an He ee f Y
oy rr (be) “chith v._cansidered fs Be tamper?
Valve gy pirm= EOIT
ko
Mie Vale 9. Jim MA
2 Median — Miler ggprach (MAA approach)
ke is ch Oo chen. 2% Net eating mame
eee ae
nach. Net speaelirg ntome 6 20th in pure
Wisma ein dete povk by
a
While MM apreach suppsib He net
TO hil oii
Cae. oo oe whe Wiles
ae oe HO whan and “ke ast
fos Jom ih _tapitah shuche:
ae “Approech a S i i
Fe tadlbornal gyros. or the nktoxolete
armel suey belaieen tenet
_cyprach andl net aes areP Dividend “Theory:
- Releunce theory:
~
fg adie OF ion
+ Wellfers Model
‘ Gor dbn 5 Model
he aviderol abcistans abuts
PTIre
2- |rrelevance theory:
cs Fre dwiclrd choses cbnot
(ee elect He valve g jn
Residual theory
- Mille $ Mid glans Hypelhes's (MM appraich, ().
Relevant theories } dividend:
[oy Walleres Medel theory:
” Tha model 4 Seseel on
) Behn on _invetmen_ or intra rate y yeturn (“)
4 » Gost y Gphl oO repuire wale g yeh ()
p- {erlEMie) — EN YS oie
ke ae
shore
te a fe
TICS
Poona eh
I
= Gorcoms Model :
: Acordng tr Hin model
shae piece i Aependert on
fay oot
pra B bre3)“ Shae
2 per Sate
EB £tE® ti lowe sae
he - br Kez Cost FY eq'ty Gpite
bt =— Greate rate in—r
| 2 Irrelevant — Hheories ) diviclend:
Ea Residual Approach: __
eanirs s _avatade mm
be ehined in He husinen ot 10 invoth
Sut 7 pod are pot wrt in bosiress hoy me
te atilutet 20 cbvidhids, This Heorg “assures
teat inves ee Ajpratiat delice
Aviclrd, aw wefrPar oY pm
2) MM theory
Dito! fbeg faut cpect
tn market fre J share ad te yale
g. te fee
ed. er
Be aa.
Whee
satis bBenhorPPRRPPPPPP?P?? RE
fe Marleh price fr spor at He Syneg poral
De Diihad 4 be wuss! af mel pod ™
a ees Market price fe stare at He od it
Bove = Caste BIN epity expt Hak 9 cop tg