Spry Plc. as a big listed company, the managers identify that there are some big undertakings which have great opportunities for success if the company has sufficiency of financess to take over it. The estimated finance needed for the undertakings is about ?200 1000000s ; the company has to seek for outside beginnings in order to reinvested net incomes in bing project. There are some topics to be reported on this piece of work is either debt or equity to be issue on the stock exchange to raise financess, discover the differing beginnings of finance available in current markets and their relevant information, and how it may consequence the cost of capital of the company after acknowledging the impact on hazard of the new finance. The following besides included the nature of the capital markets and the theories of the efficient market hypothesis.
This study will be divided into three chief constructions to cover all elements, which is first The Capital Markets environing Spry Plc. and EMH, Source of Finance and Long Term Financing Decision to Spry Plc. , and last portion is The Cost of Capital and the Capital Structure of Spry Plc.
2.0 The Capital Markets environing Spry Plc. and EMH
2.1 Capital Markets
‘In its broadest sense capital can be defined as accrued wealth that is available to make future wealth. It is wealth that is engaged in a generative procedure. The capital markets are run intoing topographic points where those who require extra capital seek out others who wish to put their surplus. ‘ ( Andrew M. Chisholm 2002: pg. 1 )
The Capital Markets is fundamentally a fiscal relationship created by public, establishments, and authoritiess with more financess ( known as financess supplier or financess investor ) transportation those financess to public, establishments, or authoritiess who have a deficit of financess ( known as financess demanders or financess borrowers ) to do minutess.
Apparently, the importance of capital markets is really to advance economic efficiency by puting financess from those who do non hold instantly productive usage for it to those who do. For an organisation it needs to be listed to merchandise its securities, therefore, Spry Plc. as one of the listed companies are allowable and should raise financess from the capital markets.
2.1.1 The construction of Capital Markets
By and large capital markets are divided into primary and secondary markets, where the chief map of primary market is to issues new securities of equity and debt support for financess demanders. The secondary market is where the outstanding securities are resold. The possible investors must foremost prosecute in the primary market topographic point before they engage in the secondary market. These are the markets where Spry plc. will be involved in the hereafter when the determination is made.
2.2 The Efficient Market
In an efficient market, investor would desire to obtain securities every bit stingily as possible and marketer will seek to obtain the highest monetary value they can for their securities. In this instance, investors want to maximise their payback but the companies are looking finance every bit stingily as possible. Therefore, securities are reasonably priced by reflecting all available information in an efficient market. There are three signifiers of efficiency:
* Allocation Efficiency: Ability of the market to apportion scarce resources to those companies which able to take to these scarce resources being used most fruitfully.
* Operational Efficiency: Refers to the operations of the market, the costs of dealing determined competitively, cut downing barriers to merchandise and merchandising quickly.
* Pricing Efficiency: Besides known as Informationally Efficient, in a pricing- efficient market, portions monetary value are to the full reflect based on outright all relevant available information.
2.2.1 Efficient Market Hypothesis ( EMH )
This hypothesis is really derived from the Pricing/ Informationally Efficiency which can be define as, portion monetary values are to the full and reasonably reflect by the all relevant available information. It means that the monetary values of securities are ever equaled based on the ‘good intelligence ‘ or ‘bad intelligence ‘ for the portions. There are three degrees of market efficiency which categorized by E.F. Fama:
* Weak signifier of Efficiency: The hypothesis states that the portion monetary values to the full reflect included past history portion monetary value motions and forms. But some of the bargainers believe that the hereafter portion monetary values might be predicted by utilizing proficient analysis to analysing historical informations.
* Semi-Strong Form of Efficiency: The hypothesis states that the portion monetary values non merely historic forms but besides all publically available information about the portions. If this hypothesis is true, so the portion monetary values will be quickly incorporated when new information becomes public.
* Strong Form of Efficiency: The hypothesis states that the portion monetary values non merely reflect by the historical forms and current relevant available information but besides all possible information included indoors available information. This meant that the markets respond so quickly that non even the interior bargainers who have the most valuable information could gain from their activities.
When Spry Plc. involves in the markets, they are really confronting hazard that they might acquire loss as markets can non be highly efficient or entirely inefficient in the existent universe, portion monetary value will follow a so called “random walk” ( for farther account please mention to Appendix 1 ) , a theory created by Louis Bachelier. This means that the lone thing that can alter the portion monetary values is a new piece of information occurs, as discuss before portion monetary values will accurately reflect on all relevant available information. But the future information is unknowable ; it might be a good or bad intelligence for a peculiar portion.
Therefore, as portion monetary values reflect so rapidly on new information, no 1 could foretell the portion monetary value by merely sing current or historical information. Spry plc. has to understand that the fiscal market is really mixture of both efficient and inefficient, sometimes it will returns reasonably while some other times it may bring forth more than mean returns excessively.
( David Blake ( 2000 ) Financial Market Analysis. Second Edition. United Kingdom: John Wiley & A ; Sons, Ltd, pg.389-405. )
3.0 Source of Finance and Long Term Financing Decision to Spry plc.
For many concern or companies, most are funded through a mixture of equity ( portion ) capital or debt capital. Apparently, the concern of how and where to acquire financess to get downing up, develop or enlargement can be a key for the success of the concern. It is so of import, so, Spry Plc. must understand that which of the beginning of finance available to the concern are the most appropriate or in relation to the demands of the concern. From managers ‘ determination, the treatment will be more into debt and equity ( portion ) finance.
3.1 Option of taking Equity Finance
Equity capital or known as portion capital is really an ownership capital, supplier of the portions is the stockholders from those who are part-owners of the company. Shares counted in units, are the investing in a limited company, either it to be a public or private limited company.
They are Numberss of advantages if company chooses equity funding, like no refund required for the capital which invested by the stockholders, no understanding for a fixed payment of dividend and the payments are determined by the Board of Directors. Equity financing able to diminish the pitching degree of company, and pay zero dividend when net incomes are low or nil. These advantage all gone if sing on debt funding side.
3.1.1 Ordinary Shares
Ordinary portions are the most common portions available in the United Kingdom ( UK ) . The proprietor of ordinary portions has the vote privileges, and to portion net incomes ( dividends ) of the company. This portion can be defined as the riskiest portion as the net incomes of company can differ wildly in old ages, hence, in good old ages the ordinary stockholders may have significant dividend but in bad old ages they may have nil. ( For illustration please mention to Ryanair Holdings Plc, Appendix 2 ) In extra on that, these stockholders have the lowest ranking in the capital construction means that other investing ( illustration: Chemical bond ) must be paid out first before them. Ordinary portions can be said the most expensive to function because the stockholders requires higher returns to counterbalance the high hazard.
Spry Plc. has a pick of two ways to publishing the portions ; one is New Issue of portions. Normally, it can publish by offer for sale as the company sells the new portions to a fiscal establishment or an issue house so they will sell the portions to the populace. Or, non issued to the populace but agreements are made to sell big ‘block ‘ of units of portions to little figure of investors like for illustration to insurance companies, this type of publishing named as Placing. Another manner of that is Right Issue of portions, raising financess by selling portions to bing stockholders to subscribe to new portions in ratio to their current retentions. The bing stockholders are offered to purchase at a discounted monetary value which means lower than the market monetary value, they has the rights to sell if the stockholders non exerting the rights.
3.2 Option of taking Debt Finance
Debt capital is a non-ownership capital suppliers by a bank or investor who buy bonds issued by the company, or by trade providers who offer footings of recognition. It has lower hazard as they are the first and must to be paid no affair the company do net incomes or non, as compensate to the lower hazard, the involvement paid is cheaper than portions ‘ dividends and involved merely a individual payment at adulthood on a fixed rate.
The advantages of taking debt funding are the involvement payment is revenue enhancement deductible, and free from dilution of the control of the bing stockholders. It is cheaper and besides a consecutive forward contract between the loaners and borrowers, the issue cost is lower compared to publishing of new portions. Normally debt holders do non hold voting rights. These advantages do non be on equity funding. Chiefly, debt finance is broken down into two classs which are Term Loan and Bonds.
3.2.1 Term Loan
Term Loan or Long-Term loan is a loan offer by a fiscal establishment ( Bank ) to a concern or company, and holding more than one twelvemonth initial adulthood. Largely this loan is made to finance capital demands, frequently for lasting work like buying equipment or machinery. In a term loan understandings usually will stipulate payment day of the months in monthly, quarterly, biannual or one-year loan payments. Over the life of the loan, the involvement and the rules are to the full repaid harmonizing to the understanding provinces.
There are besides restrictive compacts in the understandings that limit the borrower in order to protect the involvement of the loaner. Like restraint on Subsequent Borrowings and the Use of the Loan Proceeds, besides working and fixed assets limitations, in this instance because of the liquidness of a company maintain on a certain degree and some fixed assets can non be sold.
3.2.2 Chemical bond
“A corporate Chemical bond is a certification indicating that a corporation has borrowed a certain sum of money from an establishment or an single and promises to refund it in the hereafter under clearly defined terms.” ( Principles of Managerial Finance, pg495 ) This merely means a signifier of loan stock where an person or company gives a written recognition of the debt where the payment of involvement and the refund of the proviso are stated.
Face value in bond characteristic is the chief amount owed by the firmed. Coupon Rate is the contractual rate of involvement, and Redemption Date is the day of the month the house must payback and last but non least is Call Feature, where the company militias the right to retire the bond earlier before the adulthood day of the month at a premium. There are at that place types of unbarred bonds, which are unsecured bonds, subordinated unsecured bonds, and income bonds. While the secured bonds included mortgage bonds, indirect bonds, and equipment trust certifications. Other modern-day types of Chemical bonds are zero voucher bonds, debris bonds, drifting rate bonds, extendible notes, and putable bonds.
( Lawrence J. Gitman ( 1994 ) Principles of Managerial Finance. Seventh Edition. New York: Harper Collins College Publishers, pg 488-603. )
4.0 The Cost of Capital and the Capital Structure of Spry Plc.
After discovered the beginnings of finance and besides long term finance to Spry Plc, this portion is really discoursing about the impact based on the determination devising. Cost of Capital is a long term financing decision-making that will impacting the capital construction of the company, in any companies the capital structures must be a combination of both equity and debt capital. Different beginnings has different cost, overall cost can be measure by utilizing Leaden Average Cost of Capital ( WACC ) . The consequences must at least has just return or most likely greater to the subscribers.
4.1 Importance of the Cost of Capital
A progressive direction will ever set most of the concern on the cost of capital and the fluctuation of the capital market when making any funding determination in order to accomplish economical or optimum capital construction. This move is so of import because it is a important factor that will impact straight to house ‘s capital construction.
Cost of capital can be used to make up one’s minding which method of funding are the most suited for the company ; a good fiscal officer will be able to place normal dividend rates and the rate of involvement on loans in times. Besides, when a company requires extra finance like Spry Plc. is confronting now, the first concern in choosing is which where bears the lower limit of the cost of capital, at the same clip sing the relating control and avoiding hazard every bit good. Cost of capital is really measuring the public presentation of the fiscal of the top direction.
( Free MBA.in ( 2008 ) Importance of Cost of Capital in Decision Making. [ Online ] Available From: hypertext transfer protocol: //www.freemba.in/articlesread.php? artcode=343 & A ; stcode=10 & A ; substcode=22 )
4.2 Optimum Capital Structure and the Leaden Average Cost of Capital ( WACC )
Capital construction refers to the combination of different types of capital which a company uses to finance its activities. While a ‘good ‘ of capital construction of a company can be defined as which a depression overall has cost of capital, means that besides has a low overall rate of return that has to be paid to fundss suppliers. Capital construction besides known as capital geartrain can be categorized into high geartrain and low geartrain. Where high geartrain means the proportion of debt capital is higher comparative to the equity capital, and low pitching refers to the proportion of debt capital is lower than equity capital.
Spry Plc. should happen the optimal capital construction, which is a combination of debt and equity finance that has the minimal cost of funding, to cut down the WACC. Lawrence J. Gitman ( 1994: pg.474 ) provinces: ‘Optimal capital construction has strongly related to the WACC, in this country it can be explain by utilizing a in writing position of company ‘s equity, debt and WACC maps along with a modified signifier of the nothing growing rating theoretical account. The nothing growing rating theoretical account can be used to specify the company ‘s value as its after-tax earning before involvement and revenue enhancement ( EBIT ) divided by its WACC. Assuming that EBIT is changeless, the value of the company is maximized by minimising the WACC. The optimum construction is hence the 1 that minimizes the WACC. Graphically, although both debt and equity costs rise with increasing fiscal purchase, the lower cost of debt causes the WACC to worsen and so lift with increasing fiscal purchase. As a consequence, the company ‘s WACC exhibits a U form holding a minimal value, which defines the optimal capital structure-the 1 that maximizes the proprietor ‘s wealth. ‘
Many people are wonder in the existent universe is there an optimal capital construction? Actually there is two chief positions are debating on this issue which is Traditional View and the Modigliani and Miller ‘s View ( M & A ; M ) . Where the traditional position provinces that when a company involves debt capital into its construction, the overall cost of capital beads. This is because the cost of debt is cheaper than cost of equity, but beyond a certain degree the ordinary stockholders will requires higher return to counterbalance the excess hazard that they are confronting to. For farther account and graphs please refers to Appendix 3. While the M & A ; M states two theories, one M & A ; M Model 1958 with revenue enhancement which said that the entire value of the company or the WACC will nit alteration when the pitching degree alterations, this is because the manner income is depends on the hereafter runing generated by assets, so it makes no difference to the entire value of the house. Next theory is M & A ; M with revenue enhancement 1963, said that the cost of capital will diminish with increased in debt capital, this is because the involvement paid are revenue enhancement deductible. Therefore, revenue enhancement alleviation on debt involvement is an excess advantage for stockholders. For farther account and graphs please refers to Appendix 4.
Last, there is one thing that the manager should understand that the proving on these theories are complicated in pattern and as such the optimum degree of is an unresolved issue, but we can seek to minimise the WACC every bit much as possible by equilibrating all the theories stated above.
In decision, there is no specific ways or solution to vouch maximal net incomes addition by the analysis or planning of the beginnings of funding, cost of capital or even capital construction. As Ball ( 1994 ) , pg. 33 stated that ‘The reply is both yes and no. On the one manus, the research provides penetrations into stock monetary value behavior that were antecedently impossible. On the other manus, the theory of efficient markets ( like all theories ) is an progressive and limited manner of sing stock markets, as research has come to demo. ‘
Well, each company like Spry Plc. has its uniqueness with its ain construction and development ; cost of funding is merely one of the ways to derive money besides debt and equity finance. A good fiscal planning must to see other factors to happen the most appropriate option such as the ability of company to bring forth hard currency flow, the continuance of adoption, the current geartrain degree, any restrictive compacts, and so on.
Random Walk Theory
A Random Walk Down Wall Street, written by Burton Malkiel in 1973, has become a authoritative in investing literature. Random walk theory shots with the semi-strong efficient hypothesis in its averment that it is impossible to surpass the market on a consistent footing. Malkiel puts both proficient analysis and cardinal analysis to the trial and grounds that both are mostly a waste of clip. In fact, he goes to great lengths to demo that there is no cogent evidence to propose that either can systematically surpass the market. Any success surpassing the market with proficient analysis or cardinal analysis can be attributed to lady fortune. If adequate people try, some are bound to surpass the market, but most are still likely to underachieve.
Newpont Mining Corp. ( NEM ) random motion chart from Stockcharts.com
The basic random walk premiss is that monetary value motions are wholly random. Judging from the chart, the monetary value motions of Newmont Mining ( NEM ) [ NEM ] over this 5-month period would look to be rather random. Monetary values have no memory, hence past and present monetary values can non be used to foretell future monetary values ( as implied in proficient analysis ) . Monetary values move at random and adjust to new information as it comes available. The accommodation to this new information is so fast that it is impossible to gain from it. Furthermore, intelligence and events are besides random and seeking to foretell these ( cardinal analysis ) is besides a lesson in futility.
Malkiel maintains that a bargain and clasp scheme is best and persons should non try to clip ( or round ) the market. Attempts based on proficient, cardinal or any other analysis are ineffectual. True, he does hold a point. Statisticss have shown that the bulk of equity common financess fail to surpass the market, as measured by the S & A ; P 500. Investors can easy purchase index-based securities with really low minutess costs.
( hypertext transfer protocol: //stockcharts.com/school/doku.php? id=chart_school: overview: random_walk_theory )
The Ryanair and Marconi ‘ portion monetary value chart and account
Ryanair portion monetary value
Data beginning: Yokel Finance
The Ryanair portion monetary value fell so dramatically in mid-January 2004 because the company announced that its net incomes for the current fiscal twelvemonth would likely be worse than they had antecedently expected.
Marconi corporation plc suffered a similar destiny in footings of its portion monetary value which all of a sudden collapsed following proclamations of serious fiscal jobs within the group. Take a expression at how their portion monetary value has since recovered:
Marconi portion monetary value
Data beginning: Yokel Finance
Do n’t bury that the stock market is really merely a 2nd manus portion market so even though no company of all time wants its portion monetary value to prostration in the ways that we have merely seen, these portion monetary value calamities do non straight affect the concern. However, with such a down portion monetary value, companies might happen it vey hard to raise extra finance or reassure bing creditors that they are a worthwhile hazard.
If you look at the portion monetary value pages in newspapers such as the Financial Times, The Times, The Guardian and so on, the monetary values you will see there are chiefly ordinary portion monetary values. The importance of portion monetary values to a concern is that it gives an indicant of the value placed on the company by the market – for illustration if a company has 10 million portions and the current monetary value is 500p each, so the value of the company – its market capitalization – is ?50 million. If the portion monetary value plumb bobs to 200p the company would merely be ‘worth ‘ ?20 million. In such instances, companies become possible marks for coup d’etats.
( hypertext transfer protocol: //www.bized.co.uk/learn/accounting/financial/sources/ordshares.htm )
WACC and traditional position of capital construction and cost of capital
There are different thoughts with respects to the impact of capital construction alteration on rating and cost of capital.
*The debt to equity ratio ( B/S ) influences V and WACC.
Addition in V causes lessening in WACC and frailty versa. In the scope 0 to CS, as debt B increases, WACC falls, despite lifting debt carries with it hazard of residuary income, shown in the increasing cost of equity, k. However, when the debt addition beyond CS, the continue addition effects of K now starts to countervail the effects of a falling S/V, ensuing a rise in WACC. This highlights an indispensable status for stockholders gaining from capital construction optimization, i.e. the house ‘s ability to borrow on footings non available or attractive to persons. Thus a mark ratio of debt to equity fundss is an of import resource allotment for many houses.
WACC stands for ( market value ) weighted mean cost of capital, which can be express as equivalent to the rating ratio Q/V
Q/V = ( S/V ) K + ( B/V ) i = WACC,
where Q=division of expected net incomes ;
S=equity capital ;
V=market value ;
k=expected return of equity S ;
i=interest rate on debt B.
This construct of WACC is that cost of each constituent of the house ‘s capital construction is leaden comparative to the overall market value, V. With this construct, finance directors by maximizing overall market value, they will constantly understate the leaden mean cost of capital, making a favorable fiscal place for investing in the hereafter.
Addition in V – & gt ; lessening in Q/V – & gt ; lessening in WACC
( Odd Ball ( 2009 ) Discuss the impact of revenue enhancement on company capital construction determinations. Weblog. [ Online ] Available From: hypertext transfer protocol: //rg328.blogspot.com/2009/05/discuss-impact-of-taxation-on-company.html )
Modigliani & A ; Miller ( M & A ; M Propositions I & A ; II ) – Capital Structure of Corporations
If you read the chapter on Leaden Average Cost of Capital ( WACC ) , you know that the best capital construction for a corporation is when the WACC is minimized. This is partially derived from two celebrated Nobel award victors, Franco Modigliani and Merton Miller who developed the M & A ; M Propositions I and II.
M & A ; M Proposition I
M & A ; M Proposition I states that the value of a house does NOT depend on its capital construction. For illustration, think of 2 houses that have the same concern operations, and same sort of assets. Therefore, the left side of their Balance Sheets look precisely the same. The lone thing different between the 2 houses is the right side of the balance sheet, i.e the liabilities and how they finance their concern activities.
hypertext transfer protocol: //www.financescholar.com/m-m-proposition1a.jpg hypertext transfer protocol: //www.financescholar.com/m-m-proposition1b.jpg
In the first diagram, stocks make up 70 % of the capital construction while bonds ( debt ) make up for 30 % . In the 2nd diagram, it is the exact antonym. This is the instance because the assets of both capital constructions are the precisely same.
M & A ; M Proposition 1 therefore says how the debt and equity is structured in a corporation is irrelevant. The value of the house is determined by Real Assets and non its capital construction.
M & A ; M Proposition II
M & A ; M Proposition II states that the value of the house depends on three things:
1 ) Required rate of return on the house ‘s assets ( Ra )
2 ) Cost of debt of the house ( Rd )
3 ) Debt/Equity ratio of the house ( D/E )
If you recall the tutorial on Leaden Average Cost of Capital ( WACC ) , the expression for WACC is:
WACC = [ Rd x D/V x ( 1-5 ) ] + [ Re x E/V ]
The WACC expression can be manipulated and written in another signifier:
Ra = ( E/V ) x Re + ( D/V ) x Rd
The above expression can besides be rewritten as:
Re = Ra + ( Ra – Rd ) ten ( D/E )
This expression # 3 is what M & A ; M Proposition II is all about.
Analysis of M & A ; M Proposition II Graph
– The above graph tells us that the Required Rate of Return on the house ( Re ) is a additive consecutive line with a incline of ( Ra – Rd )
– Why is Re additive curved and upwards inclining? This is because as a company borrows more debt ( and increases its Debt/Equity ratio ) , the hazard of bankruptcy is even more higher. Since adding more debt is hazardous, the stockholders demand a higher rate of return ( Re ) from the house ‘s concern operations. This is why Re is upwards sloping:
– As Debt/Equity Ratio Increases – & gt ; Re will Increase ( upwards inclining ) .
– Notice that the Leaden Average Cost of Capital ( WACC ) in the graph is a consecutive line with NO incline. It hence does non hold any relationship with the Debt/Equity ratio. This is the basic individuality of M & A ; M Proposition I and II, that the capital construction of the house does non impact its entire value.
– WACC therefore remains the same even if the company borrows more debt ( and increases its Debt/Equity ratio )
( FinanceScholar.com ( no day of the month ) Modigliani & A ; Miller ( M & A ; M Propositions I & A ; II ) – Capital Structure of Corporations. [ Online ] Available From: hypertext transfer protocol: //www.financescholar.com/modigliani-miller-propositions.html )
Andrew M. Chisholm ( 2002 ) An Introduction to Capital Markets: Products, Strategies, Participants. United Kingdom: John Wiley & A ; Sons, Ltd
David Blake ( 2000 ) Financial Market Analysis. Second Edition. United Kingdom: John Wiley & A ; Sons, Ltd
Eddie McLaney ( 2009 ) Business Finance: Theory and the Practice. Eighth Edition. New Jersey: Pearson Education Ltd
Lawrence J. Gitman ( 1994 ) Principles of Managerial Finance. Seventh Edition. New York: Harper Collins College Publishers
Biz/ed ( 2009 ) Sources of Finance. [ Online ] Available From: hypertext transfer protocol: //www.bized.co.uk/learn/accounting/financial/sources/index.htm
FinanceScholar.com ( no day of the month ) Modigliani & A ; Miller ( M & A ; M Propositions I & A ; II ) – Capital Structure of Corporations. [ Online ] Available From: hypertext transfer protocol: //www.financescholar.com/modigliani-miller-propositions.html
Free MBA.in ( 2008 ) Importance of Cost of Capital in Decision Making. [ Online ] Available From: hypertext transfer protocol: //www.freemba.in/articlesread.php? artcode=343 & A ; stcode=10 & A ; substcode=22
Free MBA.in ( 2008 ) Mode of Measuring Cost of Capital. [ Online ] Available From: hypertext transfer protocol: //www.freemba.in/articlesread.php? artcode=345 & A ; stcode=10 & A ; substcode=22
James Woepking ( 2007 ) International Capital Markets and Their Importance. The University of Iowa Center for International Finance and Development. [ Online ] Available From: hypertext transfer protocol: //www.uiowa.edu/ifdebook/ebook2/contents/part3-II.shtml
Odd Ball ( 2009 ) Discuss the impact of revenue enhancement on company capital construction determinations. Weblog. [ Online ] Available From: hypertext transfer protocol: //rg328.blogspot.com/2009/05/discuss-impact-of-taxation-on-company.html
Reem Heakal ( 2009 ) What is Market Efficiency? Investopedia. [ Online ] Available From: hypertext transfer protocol: //www.investopedia.com/articles/02/101502.asp? viewed=1
Richard Loth ( 2009 ) Measuring A Company ‘s Capital Structure. Investopedia. [ Online ] Available From: hypertext transfer protocol: //www.investopedia.com/articles/basics/06/capitalstructure.asp? viewed=1
StockCharts.com- Chart School ( 2009 ) Random Walk Theory. [ Online ] Available From: hypertext transfer protocol: //stockcharts.com/school/doku.php? id=chart_school: overview: random_walk_theory
Wikipedia ( 2009 ) Capital Market. [ Online ] Available From: hypertext transfer protocol: //en.wikipedia.org/wiki/Capital_Markets
Wikipedia ( 2009 ) Capital Structure. [ Online ] Available From: hypertext transfer protocol: //en.wikipedia.org/wiki/Capital_structure
Wikipedia ( 2009 ) Financial Market Efficiency. [ Online ] Available From: hypertext transfer protocol: //en.wikipedia.org/wiki/Financial_market_efficiency