Andrew Stolz

AUGUST 6, 2020

Definition of Optimal Capital Structure. The optimal capital structure of a firm is the right combination of equity and debt financing. Debt financing may have the lowest cost, but having too much of it would increase risks to the shareholders. Why is the Optimal Capital Structure Important?

Capital Structure 52

Capital Structure Debt Financing Equity Financing Finance 52

Andrew Stolz

AUGUST 6, 2020

Definition of the Modigliani-Miller Theorem. Where V (unlevered) = company with no debt financing and V (levered) = company with some debt financing). Where V (unlevered) = company with no debt financing, V (levered) = company with some debt financing, T = tax rate, and D = amount of debt).

Debt Financing 52

Debt Financing Capital Structure Equity Finance 52

Equilest

OCTOBER 9, 2024

Whether you're deciding how much debt to take on or how to manage equity financing, the right mix can lower your cost of capital and boost growth. Understanding Capital Structure Definition and components (equity, debt, and hybrid instruments). Advantages and disadvantages of using debt.

Capital Structure 40

Capital Structure Equity Financing Equity Finance 40