If your firms actual debt ratio is different from its recommended debt ratio, how should they get

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If your firm’s actual debt ratio is different from its “recommended” debt ratio, how should they get from the actual to the optimal? In particular,

a. should they do it gradually over time or should they do it right now?

b. should they alter their existing mix (by buying back stock or retiring debt), should they invest in new projects with debt or equity or should they change how much they return to stockholders?

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Applied Corporate Finance

ISBN: 9788126537884

3rd Edition

Authors: Aswath Damodaran

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Question Posted: Jul 31, 2024 07:00 AM

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If your firms actual debt ratio is different from its recommended debt ratio, how should they get

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Applied Corporate Finance

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