Asked by
Butifel Miller
on Dec 01, 2024
Verified
Restructuring capital toward debt can contribute to shareholder value, but it can also act to decrease shareholder value.
Debt
An amount of money borrowed by one party from another, to be paid back with interest.
Shareholder Value
The worth delivered to shareholders due to management's ability to grow sales, earnings, and dividends over time.
- Analyze the consequences of altering the capital structure on both the level of risk for corporations and the worth for stockholders.
Verified Answer
KD
Learning Objectives
- Analyze the consequences of altering the capital structure on both the level of risk for corporations and the worth for stockholders.