Optimal capital structure: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add link.) |
||
| Line 19: | Line 19: | ||
* [[Capital management]] | * [[Capital management]] | ||
* [[Capital structure]] | * [[Capital structure]] | ||
* [[Green halo]] | |||
* [[Idle cash]] | * [[Idle cash]] | ||
* [[Modigliani and Miller]] | * [[Modigliani and Miller]] | ||
* [[Pecking order theory]] | * [[Pecking order theory]] | ||
* [[Tax shield]] | * [[Tax shield]] | ||
* [[Weighted average cost of capital]] | * [[Weighted average cost of capital]] (WACC) | ||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Latest revision as of 20:37, 3 January 2023
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-robustness benefits of a more conservative capital structure (with a relatively lower proportion of debt finance).
