The Capital Structure Of The Corporation Financing Oversea

In this article, we focus on the capital structure of the corporation financing oversea. Based on the classic theory of the capital structure and the three theorem of Modigliani-Miller, I use the stochastic equation as a tool to get the model of the capital structure.The article includes the following two aspects:(1) Introduce the background and significance of this article, also the main opinion of the three theorems of Modigliani-Miller. After that, the outcome of the continuous time model is briefly introduced.(2) As the main task of this article, considering the uncertain exchange rate and the profit of the company, we get the model of the corporation with and without debt under different conditions which are1. without tax and expense of bankruptcy.2. with tax but no expense of bankruptcy.3. with both tax and expense of bankruptcy.