1. 12
Capital Structure Concepts

2. Figure 12.1 Illustration of Financial Leverage
CONTEMPORARY FINANCIAL MANAGMENT / MOYER
© 2003 South-Western

3. Figure 12.2 Weighted Cost of Capital: Miller and Modigliani (No Taxes)
CONTEMPORARY FINANCIAL MANAGMENT / MOYER
© 2003 South-Western

4. Figure 12.3a
Market Value of the Firm and Cost of Capital as a Function of Capital Structure (with Corporate Income Tax)
CONTEMPORARY FINANCIAL MANAGMENT / MOYER
© 2003 South-Western

5. Figure 12.3b
Market Value of the Firm and Cost of Capital as a Function of Capital Structure (with Corporate Income Tax)
CONTEMPORARY FINANCIAL MANAGMENT / MOYER
© 2003 South-Western

6. Figure 12.4
Value of the Firm as a Function of Capital Structure (with Corporate
Income Tax, Financial Distress Costs, and Agency Costs)
CONTEMPORARY FINANCIAL MANAGMENT / MOYER
© 2003 South-Western

7. Figure 12.5 Overall Cost of Capital as a Function of Capital Structure
CONTEMPORARY FINANCIAL MANAGMENT / MOYER
© 2003 South-Western

8. Figure 12.6a
Relationship Between the Optimal Capital Structure and the
Market Value of a Firm and Its Weighted Cost of Capital
CONTEMPORARY FINANCIAL MANAGMENT / MOYER
© 2003 South-Western

9. Figure 12.6b
Relationship Between the Optimal Capital Structure and the
Market Value of a Firm and Its Weighted Cost of Capital
CONTEMPORARY FINANCIAL MANAGMENT / MOYER
© 2003 South-Western