Static theory of capital structure

• Theory that the firm's capital structure is determined by a trade-off of the value of tax shields against the costs of bankruptcy.


Follow this link for all the terms related to capital.

 Embedded terms in definition
Capital structure
Tax shield
 Related Terms
Agency theory
Arbitrage pricing theory
Average cost of capital
Bubble theory
Capital account
Capital adequacy
Capital allocation decision
Capital appreciation
Capital asset
Capital asset pricing model
Capital budget
Capital budgeting
Capital cost allowance
Capital expenditure
Capital flight
Capital gain
Capital gains yield
Capital impairment rule
Capital lease
Capital loss
Capital market
Capital market efficiency
Capital market imperfections view
Capital market line
Capital rationing
Capital stock
Capital structure
Capital surplus
Change in net working capital
Complete capital market
Cost of capital
Cost of limited partner capital
Debt capital
Debt to capital ratio
Dedicated capital
Dividend irrelevance theory
Dividend relevance theory
Efficient capital market
Equity capital
Exchange rate risk capital budgeting
Expectations theory of forward exchange rates
Financial or capital lease
Financial structure
Gigo garbage in, garbage out in capital budgeting
Hard capital rationing
Human capital
Invested capital
Issued share capital
Legal capital
Liquidity preference theory
Liquidity theory of the term structure
Local expectations theory
Marginal cost of capital
Marginal cost of capital schedule
Market segmentation theory or preferred habitat theory
Modern portfolio theory
Net working capital
Net working capital recapture
Nondiversifiability of human capital
Normal backwardation theory
Odd lot theory
Opportunity cost of capital
Optimal capital structure
Other capital
Outstanding share capital
Pecking order view of capital structure
Perfect capital market
Perfect market view of capital structure
Personal tax view of capital structure
Pie model of capital structure
Planned capital expenditure program
Portfolio theory
Preferred habitat theory
Pro forma capital structure analysis
Pure expectations theory
Random walk theory
Real capital
Real options capital budgeting
Regulatory capital
Residual theory of dividends
Risk capital budgeting
Soft capital rationing
Sophisticated approaches to capital budgeting
Static analysis
Target capital structure
Taxable capital gain
Term structure
Term structure of interest rates
Term structure of interest rates and volatility
Theory of cross hedging
Theory of hedging
Total capital
Uniform net capital rule
Venture capital
Weighted average cost of capital
Working capital
Working capital management
Working capital ratio

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