Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2147565
Capital structure optimization: a model of optimal capital structure from the aspect of capital cost and corporate value
Eleonora Kontuš
Kristina Šorić
Nataša Šarlija
Sažetak
The purpose of this study is, firstly, to examine capital structure
optimization and secondly, to provide a framework for determining
the optimal capital structure from the aspect of capital cost and
corporate value. The results of our work provide an innovative
model for arriving at a company’s optimal capital structure based
on the estimation of the effective cost of capital and the determination
of the shares of new equity and long-term debt that will both
minimize the overall cost of capital and maximize its value. The
model can be applied for quantitative estimates of optimal capital
structure. This paper contributes to the literature by applying mathematical
modeling and mathematical theory of optimization to
solve the problem of capital structure optimization, and by providing
a framework for determining optimal capital structure. The scientific
contribution of this research is development of a model of
optimal capital structure from the aspect of capital cost and corporate
value, and new equations for calculating the effective costs of
long-term financing sources. This model provides explicit advice on
optimal long-term debt and equity level and can be applied to produce
a firm-specific recommendation about optimal capital structure
that a given company should use.
Ključne riječi
The effective cost of capital; optimal capital structure; the overall cost of capital; corporate value; a model of optimal capital structure
Hrčak ID:
306815
URI
Datum izdavanja:
30.4.2023.
Posjeta: 462 *