Capital Structure Theory Explained - Raghavendra Rau

Knowing what the investors demand enables the firm to plan its financing. What type of instrument should it use? Should it issue debt or equity?This lecture will introduce the concept of Capital Structure Theory which tells the manager how to reduce capital cost by a correctly chosen mixture of debt and equity.The composition of the mixture depends on how much tax the firm pays and how it can use its financing to reduce those taxes.This lecture was recorded by Raghavendra Rau on 22nd January 2024 at Barnard's Inn Hall, LondonThe transcript and downloadable versions of the lecture are available from the Gresham College website:https://www.gresham.ac.uk/watch-now/capital-structureGresham College has offered free public lectures for over 400 years, thanks to the generosity of our supporters. There are currently over 2,500 lectures free to access. We believe that everyone should have the opportunity to learn from some of the greatest minds. To support Gresham's mission, please consider making a donation: https://gresham.ac.uk/support/Website:  https://gresham.ac.ukTwitter:  https://twitter.com/greshamcollegeFacebook: https://facebook.com/greshamcollegeInstagram: https://instagram.com/greshamcollegeSupport the show