HomeDefinitionsCompareDebt Pie model of capital structureThe financial definition for Pie model of capital structure:A model of the debt-equity ratio of the firms, graphically depicted in slices of a pie that represent the value of the firm in the capital markets. Similar MatchesMarket microstructureMarket microstructureThe functional setup of a market. Pecking order view (of capital structure)Pecking order view (of capital structure)The argument that external financing transactions costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or pecking-order of preferred sources of financing, when all else is equal. Internally generated funds are the most preferred, followed by new debt, and debt-equity hybrids. Finally, new equity is at the least preferred source. Personal tax view (of capital structure)Personal tax view (of capital structure)The argument that the difference in personal tax rates between income from debt and income from equity eliminates the disadvantage of the double taxation (corporate and personal) of income from equity. Further SuggestionsStructured arbitrage transactionStructured debt Structured note Structured portfolio strategy Structured settlement Term structure of interest rates Click to compare definitions of Pie model of capital structure Click to view definitions beginning pi |