Purchase Solution

Optimal Capital Structure.

Not what you're looking for?

Ask Custom Question

What is optimal capital structure? What is the result of an organization obtaining its optimal capital structure? What reasons might a company have for significantly changing its capital structure?

Purchase this Solution

Solution Summary

Optimal capital structure is defined. The results of an organization obtaining its optimal capital structure is discussed.

Solution Preview

Long term financing decision is about determining firm's optimum capital structure.
A firm's optimal capital structure is that mixture of debt , equity and any other source than minimizes its weighted average cost of capital (WACC). Thus it ...

Purchase this Solution


Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.