Corporate Capital Structure

January 2006 Authors Henri Servaes Professor of Finance London Business coach asshole Tufano countrified C. Coleman Professor of Financial Management Harvard Business School corporal seat of government organise The scheme and rule of Corporate Capital Structure Editors James Ballingall Capital Structure and adventure Management Advisory Deutsche Bank +44 20 7547 6738 james.ballingall@db.com Adrian Crockett Head of Capital Structure and Risk Management Advisory, atomic number 63 & Asia Deutsche Bank +44 20 7547 2779 adrian.crockett@db.com Roger Heine Global Head of liability Strategies Group Deutsche Bank +1 212 250 7074 roger.heine@db.com | | | | | |The speculation and Practice of Corporate Capital Structure |January 2006 | Executive Summary This story discusses the supposition and practice of corporate capital structure, drawing on results from a recent survey. Theoretical Considerations A firm could spend triad methods to determine its capital structure: ?Trade murder guess: There are various costs and benefits associated with debt financing. We would enquire firms to craftsmanship off these costs and benefits to come up with the aim of debt that maximizes the cling to of the firm or the value accruing to those in realise of the firm. The near signific! ant factors are listed below, together with the impact on the optimal level of debt. ? indicates that the factor is a benefit of debt and leads to a higher(prenominal) optimal debt level, while ? indicates a cost of debt that reduces the optimal level. For some...If you pauperism to get a full essay, order it on our website: OrderCustomPaper.com

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