SESSION 14: CAPITAL STRUCTURE( M&M, CAPM)

Should a company fund itself with more debt or more equity? And what return should shareholders expect for the risk they take? In this session, we explain capital structure in plain English, compare the major theories, show how a company finds its optimal mix of debt and equity, and walk you through the Capital Asset Pricing Model (CAPM) step by step. 📌 In this session, you will learn: ✅ What capital structure means and why it matters to a business ✅ The mix of debt and equity: advantages and disadvantages of each ✅ Financial risk and gearing, and how they affect shareholders ✅ The Traditional View of capital structure and how it supports an optimal gearing level ✅ Modigliani and Miller (MM) without taxes: why capital structure does not affect value ✅ Modigliani and Miller (MM) with taxes: the benefit of the tax shield on debt ✅ Comparing the Traditional View with Modigliani and Miller ✅ The optimal capital structure: the mix that gives the lowest cost of capital and the highest value ✅ The link between capital structure, WACC and the value of the firm ✅ The Capital Asset Pricing Model (CAPM): risk-free rate, market return and beta ✅ Systematic vs. unsystematic risk ✅ How to calculate the cost of equity using CAPM ✅ How to answer capital structure and CAPM questions in the exam 🎯 Who is this for? Students preparing for ICAG Professional Level Financial Management (Paper 2.4), and anyone who wants to understand capital structure theories and CAPM in simple terms. LINK TO THE DOCUMENT: https://t.me/rhacklemedia/153 📲 Need help or want to join our classes? WhatsApp: 0244724495 🔔 Subscribe to Rhackle Media and turn on the notification bell so you never miss a session! 👍 Like, comment and share with a friend who is preparing for the exams. #FinancialManagement #CapitalStructure #CAPM #ModiglianiAndMiller #TraditionalView #OptimalCapitalStructure #WACC #ICAG #Paper2_4 #AccountingStudents #RhackleMedia