公司稅務與債務政策管理研討(ppt 60頁)（英文版）

公司稅務與債務政策管理研討內容提要：
Review
Pre Mid-Term --> Debt vs. Equity overview
Last Lecture (Ch 17) reintroduced these topics
Now - We will begin to add real world complexities.
Topics Covered
Debt and Value in a Tax Free Economy
Corporate Taxes and Debt Policy
Cost of Financial Distress
Explaining Financial Choices
M&M (Debt Policy Doesn’t Matter)
Modigliani & Miller
When there are no taxes and capital markets function well, it makes no difference whether the firm borrows or individual shareholders borrow. Therefore, the market value of a company does not depend on its capital structure.
M&M (Debt Policy Doesn’t Matter)
Assumptions
By issuing 1 security rather than 2, company diminishes investor choice. This does not reduce value if:
Investors do not need choice, OR
There are sufficient alternative securities
Capital structure does not affect cash flows e.g...
No taxes
No bankruptcy costs
No effect on management incentives
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