Optimal capital structure: Difference between revisions
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imported>Doug Williamson m (Category added 9/10/13) |
imported>P.F.cowdell@shu.ac.uk m (Categorise page) |
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* [[Weighted average cost of capital]] | * [[Weighted average cost of capital]] | ||
[[Category: | [[Category:Long_term_funding]] | ||
[[Category:Corporate_finance]] | |||
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Revision as of 13:09, 15 August 2014
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).
