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What do investors use to find the intrinsic Values of stock? 1. Productivity Indexes 2. DuPont Ratios 3. Working Capital Turnover Ratios 4. Price/Earnings Ratio

What do investors use to find the intrinsic Values of stock?

1. Productivity Indexes

2. DuPont Ratios

3. Working Capital Turnover Ratios

4. Price/Earnings Ratio

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- Trade Off Theory states:

image text in transcribed

image text in transcribed

7 Beyond a certain point in the use of Debt, bankruptcy-related costs exceed the benefit of the interest tax shield and therefore the valuation of the firm increases. Beyond a certain point in the use of Debt within the capital structure, bankruptcy-related costs exceed the tax benefit of the interest tax shield and therefore the valuation of the firm decreases. 3 The increased OR decreased use of Debt in the Capital Structure makes no impact on a firm's valuation 4 Beyond a certain point in the use of Equity, bankruptcy-related costs exceed the tax benefit of the interest tax shield and therefore the value of the firm decreases

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