Logged out
Access All our Essays in an Instant
Swap your work for FREE access, or pay £4.99 for instant access
Financial Management
Member rating: No Rating | Words: | Submitted: Fri May 12 2006
Page Preview
On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:
Financial Management The Signalling model by Ross (1977) suggests that an increase in gearing should lead to a rise in share prices as managers are signalling their increased optimism. Arnold 1998. Discuss Introduction The Capital structure of a company is the combination of funds under which a company finances its company activities. This usually comprises of a mixture of debt and equity funding. Equity being funds sourced through the issue of shares and debt being borrowings. Dividends are paid to its shareholders if a company is financed either partly or entirely by equity. This is assessed as a proportion of the net profit. Therefore it is important to study the dividend theory along with the capital structure theory as the value of a company is often measured by its share price. The signalling theory by Ross (1977) is one approach concerning Capital structure but there are others, which require our consideration. Traditional The traditional...
Get instant access
- Instant, unlimited access to our documents in full
- Swap your work for free access, or pay £4.99
- To see the full version of this document and 147,231 others
Receive email updates for this category
- Simply tell us your email address and receive a weekly Study Help Email for FREE
- Receive 3 FREE essay views with each email
- Get all the latest essays from Coursework.Info & discussion from TheStudentRoom.co.uk
