Reading 32: Capital Structure Decision

I’m done with Capital Structure stuff. It was more of a repitition again; except for new stuff like MM Propositions that ignore tha taxes, finacial distress etc. There was also some new stuff that talk about how the country specific factors affect the D/E ratio and the decisions pertaining to debt issuance. They focused on the tax implications, the legal system efficient, the institutional investors…things like that.

The DOL and DFL stuff make a come back here. If you are seriously studying, then you shouldn’t need more than 2 evenings to finish off this reading. If you are slacking off like me, then make it 4 evenings!

I started off with the last reading (I’m going in the opposite direction) - Reading 31: It’s about NPV stuff and talks about capital decision making. Most of the reading builds upon stuff that we learned in CFA Level-I.

I have another test to study for and it’s due tomorrow. So, I won’t be able to do any CFA studies tonight. Hopefully, I’ll get this done by Thursday, November 15. That’s 2 weeks behind my original schedule Better late than never, I guess.