kturvey225
15.10.2021 •
Mathematics
Hi guys can you help me with this short writing thing? ASAP!
THE TOPIC IS "Explain how you add and subtract fractions (different types) "
THANKS GUUYS
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Ответ:
The optimal capital structure of a firm is the best mix of debt and equity financing that maximizes a company’s market value while minimizing its cost of capital. In theory, debt financing offers the lowest cost of capital due to its tax deductibility. However, too much debt increases the financial risk to shareholders and the return on equity that they require. Thus, companies have to find the optimal point at which the marginal benefit of debt equals the marginal cost.
Step-by-step explanation: