CORE CONCEPTS OF MANAGEMENT
MARKETING MANAGEMENT
FINANCIAL MANAGEMENT
HUMAN RESOURCES MANAGEMENT
OPERATIONS & PRODUCTION MANAGEMENT

Theory of Capital Structure
Prof. George Varughese, an industry professional with wide experience, including a stint as Managing Director of Kidder Peabody, USA, explores the classical Theory of Capital Structure propounded by Miller and Modigliani. The theory is discussed in detail with emphasis on why the manager should heed the theory while tinkering around with the debt and equity structure of the organisation. Concepts like arbitrage, value of the fi rm and leverage are ingrained into the student ’s mind. The professor also delves into the limitations of the theory and the impact of these limitations on the actions of the Finance Manager (also see FM/ AF07 and FM/AF08).
FM/AF06

24 Mins

22 Mins

60 Pages
Equivalent classroom time: 6hrs