5.1 Chapter Five Learning Outcomes

Learning Objectives

  • Identify how the Crossover Point affects decision-making.
  • Explore the interaction of Leverage and Risk Measures.
  • Consider the variables that go into a firm’s Optimal Capital Structure.
  • Connect the firm’s Capital Structure with its Valuation.
  • Calculate the effects of Leverage on Net Income, Return on Equity, and Earnings per Share.
  • Observe the effect of increased leverage on corporate risk.
  • Identify the Optimal Degree of Leverage for a company’s marginal project investments.



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Corporate Finance Copyright © 2023 by Kenneth S. Bigel is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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