Determining Optimal Financing Mix: Approaches and Alternatives Aswath Damodaran 1 Pathways to the Optimal     The Cost of Capital Approach: The optimal debt ratio…

1. Giddy/ING Barings Investment Banking 1 Investment Banking at a Crossroads Prof Ian Giddy New York University Investment Banking Corporate Sales Finance Customer-Driven…

1.Debt versus Equity 2. 2  Definition: Capital Structure is the mix of financial securities used to finance the firm.  The value of a firm is defined to be the sum…

Slide 1 The Capital Structure Decision: Theory P.V. Viswanath Based on Damodaran’s Corporate Finance Slide 2 P.V. Viswanath2 Costs and Benefits of Debt  Benefits of…

Slide 1 The Financing Mix 05/21/07 Ch. 18 Slide 2 The financing mix question In deciding to raise financing for a business, is there an optimal mix of debt and equity? If…

Slide 1 The Financing Mix 11/08/05 Slide 2 The financing mix question In deciding to raise financing for a business, is there an optimal mix of debt and equity? If yes, what…

Financial Management Session -19 Capital Structure What is Capital Structure? • The combination of debt and equity used to finance a firm’s projects is referred to as…