Business-Capital Structure Assignment Paper

Capital Structure

Activity Instruction

-Select two of the many capital structure concepts such as Modigliani and Miller, Pecking Order Theory, leverage, and so on, and explain what each is as well as how it differs from the other concept you selected. Then, step back and discuss why it is important for managers or leaders to optimize their capital structure.

-Consider dividend policy, stock repurchases, and stock splits. Discuss how investors may react differently if their company issues dividends or announces a stock split or stock repurchase. Feel free to include examples to illustrate your point.