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	1. Capital Punishment 2. Capital Punishment 3. Capital Punishment 4. Theory 5. Capital Punishment

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	Capital strctue and signaling theory
	Capital Structure and Signaling Theory Managers are insiders of the company and shareholders and other investors are outsiders. ... Issuing equity (instead of debt) to raise capital is also a bad signal. ... If it issues new equity to raise capital, the new equity holders will share everything proportionally with the existing shareholders. ... If it issues debt to raise capital, its prospect gets worse because the debt puts more burden on the company in the form of fixed regular interest payment thereby increasing the financial distress on the firm. ... According to the pecking order theory also debt is the cheapest source of outside capital. Approximate Word count = 505 Approximate Pages = 2 (250 words per page double spaced)

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