Optimal capital structure: Difference between revisions
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== See also == | == See also == | ||
* [[Capital]] | |||
* [[Capital management]] | * [[Capital management]] | ||
* [[Capital structure]] | * [[Capital structure]] | ||
Revision as of 06:04, 3 July 2021
Corporate finance - capital management.
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 benefits of a more conservative capital structure (with a relatively lower proportion of debt finance).
