Explore BrainMass

Explore BrainMass

    Optimal Capital Structure.

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com March 4, 2021, 7:40 pm ad1c9bdddf
    https://brainmass.com/business/capital-structure-and-firm-value/optimal-capital-structure-115292

    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 ...

    Solution Summary

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

    $2.49

    ADVERTISEMENT