0136091008_PPTsM16_Eiteman0136091008_12_MBF_C16课件.pptVIP

Chapter 16 Sourcing Debt Globally Optimal Financial Structure The domestic theory of optimal financial structure must be modified considerably to encompass the multinational firm. Most finance theorists are now in agreement about whether an optimal financial structure exists for a firm, and if so, how it can be determined. When taxes and bankruptcy costs are considered, a firm has an optimal financial structure determined by that particular mix of debt and equity that minimizes the firm’s cost of capital for a given level of business risk. As the business risk of new projects differs from the