Background Note | HBS Case Collection | December 1971 (Revised December 1994)

Capital Structure Decision: Underlying Theory

by William E. Fruhan Jr.


Demonstrates hypothetically and numerically the share price valuation impact of changes in a firm's capital structure.

Keywords: Capital Structure; Decisions;


Fruhan, William E., Jr. "Capital Structure Decision: Underlying Theory." Harvard Business School Background Note 272-096, December 1971. (Revised December 1994.)