Question
In the context of Optimal Capital Structure, how do you assess if a company has an optimal debt/equity ratio? The question itself has asked to
In the context of "Optimal Capital Structure", how do you assess if a company has an optimal debt/equity ratio?
The question itself has asked to figure out the Standard Deviation of the company's EBIT/Total Assets so that is likely included in the answer, or may be it.
Friends have suggested that the company's WACC is also involved.
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
