Optimal capital structure

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Revision as of 15:57, 12 June 2013 by imported>Doug Williamson (Spacing)
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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 cost saving benefits of a low WACC, and


(ii) the potential flexibility and safety benefits of a more conservative capital structure (with a relatively lower proportion of debt finance).


See also