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    Optimal Capital Structure.

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    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?

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    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 ...

    Solution Summary

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