Tag Archives: global economics

Financial Policy: What is the optimal capital structure and why does the debt level vary among industries?

Financial Policy: What is the optimal capital structure and why does the debt level vary among industries?

The objective of firm value maximization is at the heart of corporate financial theory. A company can create value through its operating, investment, and financing decisions. From the financing perspective, a firm can maximize its value by achieving the optimal mix of borrowed capital (debt) and equity; in effect, this optimal balance minimizes the firm’s Read More Financial Policy: What is the optimal capital structure and why does the debt level vary among industries?