Shared Flashcard Set

Details

Title

ACCA F9 Capital theories

Description

Brief summary of capital theories for ACCA F9 paper

Total Cards

Subject

Accounting

Level

Advanced

Created

05/27/2017

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Additional Accounting Flashcards

Term

Traditional theory

Definition

WACC is U shaped, should find and maintain optimal gearing

Term

M&M - no tax

Definition

WACC is constant, Choice of finance is irrelvant

Term

M&M - Tax

Definition

WACC falls, Use as much debt as possible

Term

Pecking order

Definition

No theorised process, use line of least resistance