Optimal capital structure

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

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).


See also