Optimal capital structure and Shared Service Centre: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Administrator
(CSV import)
 
Line 1: Line 1:
''Corporate finance - capital management.''
(SSC). Shared Services provide a service by one part of an organisation or group where previously the service had been found in more than one part of the organisation or group. The funding and resourcing of the service is shared so the providing department becomes an internal service provider.  
 
1.
 
The capital structure which results in the lowest Weighted Average Cost of Capital (WACC).
 
 
2.
 
The most appropriate capital structure taking account of both:
 
* The immediate cost saving benefits of a low WACC.
* The potential flexibility and safety-robustness benefits of a more conservative capital structure (with a relatively lower proportion of debt finance).
 


== See also ==
== See also ==
* [[Black swan]]
* [[Outsourcing]]
* [[Capital]]
* [[Capital management]]
* [[Capital structure]]
* [[Idle cash]]
* [[Modigliani and Miller]]
* [[Pecking order theory]]
* [[Tax shield]]
* [[Weighted average cost of capital]]


[[Category:Corporate_finance]]
[[Category:Long_term_funding]]

Revision as of 14:20, 23 October 2012

(SSC). Shared Services provide a service by one part of an organisation or group where previously the service had been found in more than one part of the organisation or group. The funding and resourcing of the service is shared so the providing department becomes an internal service provider.

See also