Is there an optimal capital structure, Financial Management

Assignment Help:

Is there an optimal capital structure? What is it and how can it be calculated?

There is no optimal capital structure. Capital structure is a variable which depends on the inclination of high directives and which has a many of implications for the company: for its daily functioning, for its growth, for its capacity to manage risks and crisis and for its survival. If we consider the optimal structure the one that maintains a minimum WACC, then the optimal structure is the one that maximizes debt

 


Related Discussions:- Is there an optimal capital structure

Find out the current stock price, Great Pumpkin Farms just paid a dividend ...

Great Pumpkin Farms just paid a dividend of $3.50 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely.  Investors require a 16 p

Calculate the price of a put option contract, The price of a non-dividend p...

The price of a non-dividend paying share, St, follows a geometric Brownian motion process. The current price of the share is £10 and volatility of the share price process is 12% pe

George thomas, which type of financing is appropriate to each firm

which type of financing is appropriate to each firm

How to calculate cost of capital?, To calculate the Cost of Capital, we wil...

To calculate the Cost of Capital, we will use the Weighted Average Cost of Capital (WACC) formula             WACC = (E/V) X R E + (D/V) X R D X (1 - T C ) where

Finance, a recent business school graduate, you work directly for the corpo...

a recent business school graduate, you work directly for the corporate treasurer. Your corporation is going to issue a new security plan and is concerned with the probable flotatio

International monetary system, what is the criteria for a good internationa...

what is the criteria for a good international financial system

Common size financial statement, Common Size Financial Statement Common...

Common Size Financial Statement Common Size Financial Statement is a company financial statement that shows all items as percentages of a common base figure. This kind of finan

Stakeholders, identify five stakeholder groups and breifly explain their fi...

identify five stakeholder groups and breifly explain their financil and other objectives

Finance Homeork question/quote, The management of Border Bank has asked you...

The management of Border Bank has asked you to help with it with its market risk calculations. It has compiled the following data on its financial assets: • $500 million of amorti

Define criteria for a good international monetary system, Discuss the crite...

Discuss the criteria for a ‘good’ international monetary system. Answer: A good international monetary system must offer (i) sufficient liquidity to the world economy, (ii)

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd