Optimal capital structure: Difference between revisions
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imported>Doug Williamson (Improved layout.) |
imported>Doug Williamson m (Category added 9/10/13) |
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* [[Modigliani and Miller]] | * [[Modigliani and Miller]] | ||
* [[Weighted average cost of capital]] | * [[Weighted average cost of capital]] | ||
[[Category:Capital_Structure]] | |||
Revision as of 11:23, 9 October 2013
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:
(i) The immediate cost saving benefits of a low WACC.
(ii) The potential flexibility and safety benefits of a more conservative capital structure (with a relatively lower proportion of debt finance).
