What’s on the Capital Structure poster
Modigliani-Miller against In practice, side by side.
- Modigliani-Miller: Without tax, structure is irrelevant
- Modigliani-Miller: Firm value comes from its assets
- Modigliani-Miller: With tax, debt adds a tax shield
- Modigliani-Miller: Assumes no bankruptcy costs
- Modigliani-Miller: A benchmark, not a prescription
- In practice: Bankruptcy costs rise with debt
- In practice: Agency costs between debt and equity
- In practice: Financial distress deters customers
- In practice: Trade-off theory: an optimum exists
- In practice: Pecking order: retained, then debt, then equity
- The trade-off theory says value rises with the tax shield until distress costs overta…
Pecking order explains observed behaviour better: firms prefer internal funds because issuing equity signals overvaluation.
Questions about the Capital Structure poster
- What’s on the Capital Structure poster?
- Modigliani-Miller against In practice, side by side. Modigliani-Miller: Without tax, structure is irrelevant; Modigliani-Miller: Firm value comes from its assets; Modigliani-Miller: With tax, debt adds a tax shield; Modigliani-Miller: Assumes no bankruptcy costs; Modigliani-Miller: A benchmark, not a prescription; In practice: Bankruptcy costs rise with debt; In practice: Agency costs between debt and equity; In practice: Financial distress deters customers; In practice: Trade-off theory: an optimum exists; In practice: Pecking order: retained, then debt, then equity; The trade-off theory says value rises with the tax shield until distress costs overta…. Pecking order explains observed behaviour better: firms prefer internal funds because issuing equity signals overvaluation.
- Who is the Capital Structure poster for?
- Capital Structure belongs to the Accounting & Finance section rather than to a school year, because business is not something one grade owns. Anyone learning corporate finance can pin it up — a beginner, a student mid-course, or someone revising years later.
- When should you use the Capital Structure poster?
- In a perfect market, structure is irrelevant. Real markets are not perfect. A wall chart earns its place by being glanceable from where the work is happening, so Capital Structure belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
- What other posters go with Capital Structure?
- Behavioural Finance, CAPM and Corporate Governance sit alongside Capital Structure in the Accounting & Finance section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Behavioural FinanceCAPMCorporate Governance
- Is the Capital Structure poster free to download and print?
- Yes. Capital Structure downloads as a free PDF with no account, no email and no watermark, like everything else in the Accounting & Finance section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
- What size does the Capital Structure poster print at?
- Capital Structure is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Capital Structure loses nothing.Printing guide
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