CAPITAL STRUCTURE AND COST - BOOK VS MARKET VALUES
{"Image DocumentName": "CAPITAL STRUCTURE AND COST - BOOK VS MARKET VALUES", "Image ImageDescription": "A Source of Confusion: Both capital structure and component costs can be viewed in terms of either the book or market values of the underlying capital. 1. CAPITAL STRUCTURE. Initial Capital Structure - Book and Market Values Equal.   % Equity 10,000 shrs x  10 =  100,000 50% Debt 100 bonds x  1,000 =  100,000 50% Total  200, % Now imagine that stock price increases to  12, while interest rates climb driving. the price of the bonds down to  850. -Book Values Don t Change- TM 11-3 Slide 1 of 3.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}