Abstract
The purpose ofthis essay is to discuss some existing theories in corporate fmance and how these theories are related to the complex issue ofcompany valuation. Specific issues that are treated are i) how companies detennine their capital structures, ii) how the capital structure policy together with the projected development ofthe company's operating perfonnance may affect its (expected) future costs of capital, and, thus, its value, and iii) the dividend policy's (possible) effect on company value. Further, the essay highlights the issues studied in Essays 2 - 4 in this dissertation and discusses the underlying assumptions ofthese studies. Thus, this essay may serve as an introduction to the other essays in the dissertation, as well as to the field ofcompany valuation in general.