Corporate Finance discussion paper 2

Discussion paper 2
Capital structure decisions: 
What Spanish CFOs think
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Slide 1: Slide
BedrijfseconomieWOStudiejaar 3

This lesson contains 9 slides, with interactive quizzes and text slides.

Items in this lesson

Discussion paper 2
Capital structure decisions: 
What Spanish CFOs think

Slide 1 - Slide

Please make groups of 4 students
You only need 1 mobile phone per group to participate

Slide 2 - Slide

We will discuss 5 questions/statements
Each group can discuss with each other for 2 minutes, then answer the question and we'll start a discussion. 

Sign up via the following QR-code in the next slide

Slide 3 - Slide

Imagine you're the CFO of Apple (with 33% debt ratio), what will be the most important funding source for you?
Retained earnings
Bank debt
Commercial debt (operational B2B debt)
Shares

Slide 4 - Poll

The article highlights the gap between capital structure theories and real-world corporate finance decisions. Do you agree that capital structure theories provide only a partial explanation for CFO decision-making? Why, why not?
Agree
Disagree

Slide 5 - Poll

Which theory is applied more often by CFOs? And think about an explanation.
Pecking order theory
Trade-off theory

Slide 6 - Poll

The article emphasizes the importance of financial flexibility as a key factor in CFOs' decision-making. How can a company maintain financial flexibility while also maintaining a target debt level?"

Slide 7 - Open question

To which theory is market timing theory more related? Think about an explanation.

Pecking order theory
Trade-off theory

Slide 8 - Poll

Thank you for your attention and participation!


On behalf of:
Ilse, Simon, Sander, Coen, Ershad & Jaron

Slide 9 - Slide