Andrew Stolz

AUGUST 6, 2020

Definition of Optimal Capital Structure. The optimal capital structure of a firm is the right combination of equity and debt financing. It allows the firm to have a minimum cost of capital while having the maximum market value. The lesser the cost of capital, the more the market value of the company.

Capital Structure 52

Capital Structure Debt Financing Equity Financing Finance 52

Sun Acquisitions

APRIL 26, 2024

As organizations embark on these transformative journeys, one critical aspect that demands meticulous consideration is the financing model. The risk-reward equation in M&A financing is a delicate balance, where potential pitfalls and gains play a pivotal role in shaping the merged entity’s future.

Finance 59

Finance Debt Financing Equity Financing Equity 59

Equilest

JANUARY 8, 2023

The Modigliani-Miller theorem is a fundamental principle in finance that . describe the relationship between the capital structure of the firm and its value. . Their work was groundbreaking at the time and has had a lasting impact on finance. - Are they useful in Business Valuation? Let's discuss. Why is that?

Weighted Average Cost of Capital 40

Weighted Average Cost of Capital Business Valuation Capital Structure Debt Financing 40

Harvard Corporate Governance

FEBRUARY 2, 2024

Huber, Latham & Watkins LLP, on Tuesday, January 30, 2024 Tags: enforcement , ESG , Greenwashing , litigation , regulation , Stakeholders , Value chain Accounting Information and Risk Shifting with Asymmetrically Informed Creditors Posted by Tim Baldenius (Columbia University), Mingcherng Deng (City University of New York), and Jing Li (Hong Kong (..)

Debt Financing 100

Debt Financing Banking Capital Structure Finance 100

Andrew Stolz

AUGUST 6, 2020

The theory suggests that a company’s capital structure and the average cost of capital does not have an impact on its overall value. . It doesn’t matter whether the company raises capital by borrowing money, issuing new shares, or by reinvesting profits in daily operations. Definition of the Modigliani-Miller Theorem.

Debt Financing 52

Debt Financing Capital Structure Equity Finance 52

Lighter Capital

JANUARY 11, 2022

At Lighter Capital, our Investment Team encounters a lot of questions from startup founders about the features of our financing solutions, such as early payoff provisions, minimum return requirements, warrants, debt covenants , and even whether we require a personal guarantee. What is a debt warrant? How do warrants work?

Debt Financing 52

Debt Financing Equity Finance Start-ups 52

Reynolds Holding

APRIL 25, 2023

We propose a theory of corporate finance based on the idea that firm managers maximize EPS: the difference between net operating profits and interest expense divided by total shares outstanding. To see this distinction, consider the choice of capital structure: whether to use equity financing or a combination of equity and debt.

Net Present Value 59

Net Present Value Corporate Finance Finance Equity 59