Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. describe the relationship between firm's target ca

Describe the relationship between firm's target capital structure and WACC.

60.1K

Verified Solution

Question

Finance

Describe the relationship between firm's target capitalstructure and WACC.

Answer & Explanation Solved by verified expert
4.1 Ratings (761 Votes)
Firms target capital structure refers to capital which the firm is trying to obtain target capital structure describes the mix of debt preferred stock and common equity which is expected to optimize a companys stock price As a company raises new capital it will focus on maintaining this target or optimal capital structure Weighted average cost of capital WACC is the average rate of return a    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

Determine confidence intervals for each of the following: Sample Statistic Sample Size Confidence Level Confidence Interval Lower Boundary Upper Boundary Mean: 150 Std. Dev.: 30 200 95% Percent: 67% 300 99% Mean: 5.4 Std. Dev.:...

Medical Sciences
1.2K views

â—¦ Describe the different types of blood vessels (including two types of arteries and three types...

Mechanical Engineering
1.2K views

For the case of uniform body forces, show that the plane stress equilibrium equations imply that 2∂...

Physics
1.2K views

4 The force between two parallel wire is 2 x 10 7 Nm which are...

Basic Math
1.2K views

Find a differential operator that annihilates the given function e5x 12ex A differential operator that...

Basic Math
1.2K views

Which polynomial represents the difference below?-3x+10-(9x8+4x)A. 8x+x+10B. -9x5+x+x+10C. 10x5 + 12x+10D. -9x8+X7-7X+10

Basic Math
1.2K views

Simplify each expression so it is written as only one exponential expression. Do not evaluate...

Algebra
1.2K views

3 Prove that the relation R defined on the set X N 0 by aRb...

Accounting
1.2K views

the benefit(s) and cost(s) of auditors providing non-audit services on audit quality

Accounting
1.2K views

Problem 4 ABC Lessee Co, enters a lease agreement with XYZ Co. on January 1,...

Accounting
1.2K views

Sun Corporation received a charter that authorized the issuance of 101,000 shares of $4 par...

Accounting
1.2K views

Problem 11-41 Overhead Calculations; Variance Interpretation (LO 11-5) Maxwell Company uses a standard...