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In a perfect world, if the firm value is $76 under the debt-laden capital structure (say...

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Finance

In a perfect world, if the firm value is $76 under thedebt-laden capital structure (say $70+$6), but the managers chosethe $75 capital structure (say, all equity), what would you do?

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Capital Structure is basically how a firm finances its overall operations and growth by using different source of funds It is combination of both debt and equity in right balance I say right balance not equally balance It is the key of    See Answer
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In a perfect world, if the firm value is $76 under thedebt-laden capital structure (say $70+$6), but the managers chosethe $75 capital structure (say, all equity), what would you do?

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