Ask your own question, for FREE!
Finance 18 Online
OpenStudy (anonymous):

How can I find optimal debt ratio for the company I am analyzing?

OpenStudy (anonymous):

i would calculate cost of capital at each debt/capital level from may be 20%, in 10% increments, up to 60%. at whatever level the cost of capital is lowest, that is the optimal debt load.

OpenStudy (anonymous):

If there is no tax advantage for issuing debt, do not issue debt. Some middle eastern nations have zero tax rate.

OpenStudy (anonymous):

by optimal, u mean from whose perspective? credit agency? equity analyst? internal valuation?

Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!
Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!