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8 sie 2024 · The optimal capital structure of a firm is the best mix of debt and equity financing that maximizes a company’s market value while minimizing its cost of capital. In theory, debt...
This paper contributes to the literature by applying mathematical modeling and mathematical theory of optimization to solve the problem of capital structure optimization, and by providing a framework for determining optimal capital structure.
26 sty 2023 · The choice of the optimal capital structure, i.e., a capital structure that minimizes the weighted average cost of capital WACC and maximizes the company’s capitalization, V, is one of the most important tasks solved by the company’s financial manager.
proposed by Modigliani and Miller. Under plausible conditions the model implies a unique optimal capital structure. Comparative statics analysis is used to obtain a number of testable hypotheses which specify the parameters on which optimal financial policy depends.
21 kwi 2010 · We show that capital structure decisions can be framed as multiple criteria decision problems which can then benefit from multiple criteria decision support tools that are widely available.
existence of an optimal capital structure is essentially an empirical issue as to whether or not the various leverage-related costs are economically significant enough to influence the costs of corporate borrowing.
The choice of the optimal capital structure, i.e., a capital structure that minimizes the weighted average cost of capital WACC and maximizes the company’s capitalization, V, is one of the most important tasks solved by the company’s financial manager.
