Exploiting Debt Holders: The Agency Costs of Leverage
Motivating Managers: The Agency Benefits of Leverage
Agency Costs and the Tradeoff Theory
Asymmetric Information and Capital Structure
Capital Structure: The Bottom Line

Problems 8.4-8.5

Default and Bankruptcy in a Perfect Market
The Costs of Bankruptcy and Financial Distress
Financial Distress Costs and Firm Value
Optimal Capital Structure: The Tradeoff Theory

Problem 8.1-8.3

Default and Bankruptcy in a Perfect Market
The Costs of Bankruptcy and Financial Distress
Financial Distress Costs and Firm Value
Optimal Capital Structure: The Tradeoff Theory

Problem 8.1-8.3

The Interest Tax Deduction
Valuing the Interest Tax Shield 
- Interest Tax Shield with Permanent Debt
- WACC with Taxes
- Interest Tax Shield with a Target Debt-Equity Ratio

Optimal Capital Structure with Taxes

Problem 7.3

The Interest Tax Deduction
Valuing the Interest Tax Shield 
- Interest Tax Shield with Permanent Debt
- WACC with Taxes
- Interest Tax Shield with a Target Debt-Equity Ratio

Optimal Capital Structure with Taxes

Problem 7.3