CAPITAL STRUCTURE

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Across
  1. 3. Pecking order theory states that firms will prefer retained earnings to any other source of finance, and then will choose debt, and last of all ______
  2. 4. Loss of customers’ confidence is an example of _____cost of financial distress
  3. 7. The ultimate distress is ________ where ownership of the firm’s legal assets is legally transferred from stockholders to bondholders.
  4. 9. Companies at ______life cycle should use of debt as it is cheaper than equity.
  5. 10. Issuance of new shares is least preferable due to issue costs & possible _______ of control.
Down
  1. 1. Gearing will result in the amount available for dividends will be more ________
  2. 2. Bankruptcy cost can be categorized as direct cost, indirect cost & _______ cost
  3. 5. There is a _______ between the tax advantage of debt and the costs of financial distress.
  4. 6. _________ strategies usually to hurt bondholders and help stockholders.
  5. 8. Gearing is the amount of______ finance a company uses relative to its equity finance