ichudov@algebra.com (Igor Chudov @ home) writes:
Dr.Dimitri Vulis KOTM wrote:
ichudov@algebra.com (Igor "FUCK MNE HARDER" Chudov @ home) writes:
Dr.Dimitri Vulis KOTM wrote:
Therefore it's sometimes more profitable for a company to raise money b issuing bonds (debt) and paying tax-deducuble interest than by selling stock (equity) and paying non-decuctible dividentds to stockholders. There is, in fact, a neat theorem that says that (*_under certain assumptions_*) the value of a firm does not depend on its capital structure.
Igor, you begin to sound just like Timmy May - talking about things you kno nothing about.
Surely I know nothing about finance. Never claimed otherwise.
Then I suggest that you get hold of an undergraduate book on corporate finance, such as Ross, Westerfield, Jordan, from Irwin. They just came out with the 3rd edition). Read their very lucid explanation of M&M's work, and in particular what they mean by "bankrupcy costs". Sure beats quoting academic papers that you don't understand. --- Dr.Dimitri Vulis KOTM Brighton Beach Boardwalk BBS, Forest Hills, N.Y.: +1-718-261-2013, 14.4Kbps