This publication specializes in microeconomic foundations of capital constitution thought. It combines theoretical effects with plenty of examples, routines and functions. The booklet examines primary rules in capital constitution administration, a few of that are nonetheless now not rather well understood within the enterprise group, resembling Modigliani and Miller’s irrelevance end result, trade-off thought, pecking-order concept, asset substitution, credits rationing and debt overhang. Chapters additionally disguise capital constitution matters that experience turn into extremely important following the new monetary concern. Miglo discusses the ways that monetary economists have been pressured to appear severely at capital constitution, because the difficulties confronted through many businesses stemmed from their financing regulations following the drawback. The ebook additionally discusses hyperlinks among capital constitution and firm’s functionality, company governance, firm’s technique and suppleness, and covers such themes as lifestyles cycle method of capital constitution administration, capital constitution of small and start-up businesses, company financing as opposed to venture financing and examples of optimum capital constitution analyses for various businesses. This accomplished consultant to capital constitution idea can be of curiosity to all scholars, lecturers and practitioners trying to comprehend this fast-developing and important zone of commercial management.