FINANCIAL STRUCTURE AND THE THEORY OF PRODUCTION.

This article examines the three production decisions that all business enterprises must face and attempts to incorporate them into a novel decision model. These decisions include designing a production plan that assess how much to produce and the means of production, how to invest capital in order to maintain production and how to finance this investment. The author extends research that has examined portions of these decisions by incorporating them all into one model. The author's model is designed to maximize shareholder value for a single product firm.