Historical weights, Financial Management

Can some one tell me the defination of Historical weights and how we calculate the historical weight??

And given the diffrence between Historical weight Vs Marginal weights??

Posted Date: 2/14/2013 12:14:18 AM | Location : United States





Historical weights:

Historical weights shows the weights assigned to several sources of finance based on the existing capital structure. The existing capital structure is taken as the base or the optimal capital structure and the relative weights are needed.

The aspects relevant to the choice of appropriate weights are:

Historical weight Vs Marginal weights

Historical weight will be book value weights or Market value weights

Posted by Jhon | Posted Date: 2/14/2013 12:15:06 AM


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