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. What Impacts the Optimal Capital Structure?

Capital Structure 52

Capital Structure Debt Financing Equity Financing Finance 52

Equilest

OCTOBER 9, 2024

Understanding your company’s capital structure is essential for maximizing its value and ensuring long-term stability. Whether you're deciding how much debt to take on or how to manage equity financing, the right mix can lower your cost of capital and boost growth. Downsides of relying too much on equity.

Capital Structure 40

Capital Structure Equity Financing Equity Finance 40

Andrew Stolz

AUGUST 6, 2020

Definition of the Modigliani-Miller Theorem. 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.

Debt Financing 52

Debt Financing Capital Structure Equity Finance 52

Andrew Stolz

AUGUST 5, 2020

Definition of Weighted Average Cost of Capital. The WACC is the average cost of raising capital from all sources, including equity, common shares, preferred shares, and debt. What Impacts the Weighted Average Cost of Capital? The lower the cost of capital, the higher the present value of future cash flows.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Equity Capital Structure Equity Financing 52

Benzinga

AUGUST 28, 2024

Proposed Business Combination As previously announced, Tactical Resources entered into a definitive business combination agreement (the "Business Combination Agreement") with Plum on August 22, 2024. The exchange ratio will be adjusted in the event that the Company completes any new equity financings prior to the Closing.

Enterprise Value 40

Enterprise Value Equity Financing Equity Net Debt 40

Equilest

MARCH 28, 2025

How does negative equity affect dividends? Recognizing the conditions under which equity value can turn negative allows for more informed decision-making, improved risk assessment, and the implementation of proactive strategies to mitigate financial distress. Scenario Analysis: Simulates various financial scenarios.

Equity 40

Equity Net Debt Enterprise Value Capital Structure 40

Cooley M&A

SEPTEMBER 16, 2024

One strategy for moving forward in a merger of equals transaction is to agree on a timeline for aligning on key issues and then only move to drafting definitive documents once the key issues have been agreed. Like in an equity financing transaction, the combined company will often establish a new go-forward equity pool.

Equity 52

Equity Finance Capital Structure Equity Financing 52