What does the theory of capital structure include

1, net income theory: the theory that the use of debt can reduce the enterprise's comprehensive cost of funds. Since the cost of debt is generally low, the higher the degree of indebtedness, the lower the comprehensive cost of capital and the greater the value of the enterprise. When the debt ratio reaches 100%, the enterprise value will be maximized.

2, net income theory: the theory that the theory that the capital structure has nothing to do with the value of the enterprise, the key element in determining the value of the enterprise is the net operating income of the enterprise. Although debt capital reduces the cost of the enterprise, it also increases the risk of the enterprise and increases the cost of equity.

3, MM theory: MM theory that, in the absence of corporate and personal income tax, the value of any enterprise, regardless of its debt, is equal to the operating profit divided by the rate of return applicable to its risk level.

4. Agency theory: Agency theory suggests that the capital structure of a firm affects the level of work and other behavioral choices made by managers, which in turn affects the firm's future cash receipts and the firm's market value.

5. Rank Financing Theory: This theory holds that the cost of debt financing is lower than that of equity financing, but that corporate liabilities should be moderate, and that corporations should maintain a certain amount of debt capacity in order to cope with possible changes in the future.