Stake attention in this memory
The image displays a close-up of two overlapping notebooks or papers filled with handwritten notes, suggesting a study or academic context. The notes primarily focus on financial concepts related to capital structure, gearing, and the Weighted Average Cost of Capital (WACC), with sections discussing theories "Without Tax" and "With Tax." On the left, the visible page contains detailed blue ink handwriting with yellow highlighting. Key phrases include "Capital structure," "gearing debt," "lower its WACC using some debt Finance," "WACC increases after an optimal point," and "M&M without tax argues that capital structure is irrelevant to co value." Further down, "M&M with tax recognises that interest payments are tax deductible" and "Debt finance therefore create a tax shield" are visible. The right page features a graph depicting "Cost of capital (%)" against "Level gearing." The graph shows curves for "Ke = cost of equity," "Kd = cost of debt," and "WACC," illustrating an "optimal WACC" at 40% gearing. Annotations label points A and B, and 60% on the cost of capital axis. A red asterisk is marked below the graph. Below the graph, a section titled "The implications of the above are as follows:" lists three points, all heavily highlighted in yellow: a) "Since a company should always wish to borrow debt finance until it achieves the optimal level" b) "Once the company has reached its optimal gearing by raising future finance part eg... level of gearing unchanged." c) "Whilst gearing up, the company should... raised (the marginal cost of capita)" The overall impression is one of diligent note-taking and learning about corporate finance.
Symbol
1A184
Volume
5,720
Creator
+$0.02
Revenue
+$0.03
TVL
$1.96
