Optimal capital structure and Sovereign wealth fund: Difference between pages

Revision as of 09:39, 3 August 2018

(SWF).

An investment fund owned by a sovereign government, whose investment strategies include investing in foreign assets.

For example, the Qatar Investment Authority (QIA).

Also known as a sovereign fund.

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+(SWF).
-The capital structure which results in the lowest Weighted Average Cost of Capital (WACC).
+An investment fund owned by a sovereign government, whose investment strategies include investing in foreign assets.
+For example, the Qatar Investment Authority (QIA).
-.
-The most appropriate capital structure taking account of both:
+Also known as a ''sovereign fund''.
-(i) the cost saving benefits of a low WACC, and
+== See also ==
+* [[Investment fund]]
+* [[Qatar]]
+* [[Sovereign]]
+[[Category:Investment]]
-(ii) the potential flexibility and safety benefits of a more conservative capital structure (with a relatively lower proportion of debt finance).
-== See also ==
-* [[Capital structure]]
-* [[Modigliani and Miller]]
-* [[Weighted average cost of capital]]