财务管理英文课.pptVIP

Financial structure design How should a firm divide its total fund sources between short- and long-term (permanent) components? What mix of long-term financing sources should make up the firm’s capital structure? Why is capital structure important? Leverage Higher financial leverage means potentially higher returns to shareholders, but higher risk due to higher interest payments Cost of capital Each source of finance has a different cost. Capital structure affects the cost of capital Optimal capital structure The structure that minimises the firm’s cost of capital and maximises firm value