Busıness Fınance Iı Deneme Sınavı Sorusu #1008470

What do you mean by optimal capital structure?


Optimum capital structure is the capital structure at which the weighted average cost of capital is minimum and thereby the value of the firm is maximum.

An optimal capital structure is the best mix of debt.

A company's capital structure is arguably one of its most important choices. 

The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

The capital structure is defined as the careful balance between equity and debt.


Yanıt Açıklaması:

The decision to issue security in the form of debt or stock depends on the optimal capital structure of a corporate. The capitalization of a company can be defined as the balance sheet value of stocks and bonds outstanding. In this framework, capital structure refers to the kinds of securities and the proportionate amounts that make up capitalization.

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