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How does one determine an optimal debt/equity split for a deal?

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How does one determine an optimal debt/equity split for a deal?

What issues must be considered? Do not cut and paste from textbooks. Do some actual research from graduate papers, and cite them.

Give an example of an actual deal.

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The expert determines how one determines an optimal debt/equity split for a deal. The response addresses the query posted in 418 words with APA references.

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The response addresses the query posted in 418 words with APA references

//In the merger and acquisition deals, the purchasing company is required to decide on the mode of payment to be made to the vendor company. In this context, in the following discussion, the issues, which are to be considered by the purchasing company

in deciding the mode of payment, have been discovered.//
In a merger deal, the purchasing company can make payment to the vendor company either by issuing stock or paying cash. In case of cash dealing, generally, the purchasing company opts for borrowing that is the purchasing company borrows money from the market and pays to the vendor. There are several issues, which must be considered before deciding the equity or debt to be used in ...

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  • MBA (IP), International Center for Internationa Business
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