Discuss the Trade-off model and explain its components and the theory behind it. What does that
model say to us regarding the optimal capital structure of the firms?

Question 2.
List and explain by using relevant examples at least five of the factors affecting the capital structure
decisions. (900 words)

Question 3. (900 words)
The Capital Asset Pricing Model (CAPM) is the most researched as well as critically examined
technique in the field of finance. The concepts of Security Market Line (SML) and Capital Market Line
(CML) are employed as tools for the estimation of expected return on Securities and Portfolios.

• Explain and discuss the CAPM model. (20 marks)
• List and explain the assumptions made by the model. (10 marks)

Get your Copy at just $52. Lowest price Online

+91-9717219922