Sentence examples for an optimal capital structure from inspiring English sources

We need to know what management considers an optimal capital structure.

The trade-off theory states that there is an optimal capital structure for each individual bank.

Also, we test whether the choice of financial instruments targets an optimal capital structure.

If the trade-off theory holds, banks prefer to combine issuances of different instruments to reach or maintain an optimal capital structure.

The trade-off theory states that there is an optimal capital structure for each individual bank and banks should issue those financial instruments that minimize the overall cost of their capital structure.

In two subsequent papers (Cheong 1998, 1999), Cheong finds that if the quality difference between high and low quality firms is sufficiently large then the high quality firms can achieve a unique optimal capital structure which is characterized by a low debt to equity ratio.

Starting from the seminal papers of Modigliani and Miller (1958, 1963), a lot of financial research has focused attention on optimal capital structure.

This paper builds a static contingent-claim model that allows for examining the optimal capital structure with the joint arguments of counterparty default risk and market incompleteness.

By assuming a time-independent debt structure, Leland [3] derived closed-form solutions for the value of debt and for optimal capital structure.

Driven by the same trade-off argument between bankruptcy costs associated with higher debt levels and the tax advantage of debt, Carlson and Lazrak (2010) find that the optimal capital structure depends on the composition of managerial pay.

To add another twist to the complications, the optimal capital structure is limited by asset liquidity: the hospital with more liquid assets (e.g., cash and treasury securities on the balance sheet) can afford a higher optimal level of debt.