Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Capital is money companies raise for long-term business investments and expenses. Long-term financing and investor equity are the two primary sources of capital. The optimum balance is referred to as ...

A capital structure is the mix of a company’s financing which used to fund its day-to-day operations. These sources of funds originate from equity, debt and hybrid securities. The equity will come in ...

A multiperiod model of optimal capital structure is developed under the assumption that earnings follow an autoregressive process. Firm value and leverage vary through time and, at each date, the firm ...

Capital structure is a term that describes the proportion of a company’s capital, or operating money, that is obtained through debt versus the proportion obtained through equity. Debt includes loans ...

Antill, Samuel, and Steven R. Grenadier. "Optimal Capital Structure and Bankruptcy Choice: Dynamic Bargaining vs Liquidation." Journal of Financial Economics 133, no. 1 (July 2019): 198–224.

This paper examines how the optimal investment in the capacity of flexible and nonflexible resources is affected by financial leverage and, conversely, how a firm's, resource flexibility affects its ...

A company's capital structure is its mix of equity and debt. Investors can examine a company's capital structure by looking at its balance sheet. Although there is no specific level of debt and equity ...

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. Mergers and acquisitions have become a common strategy for organizations aiming to expand ...

Indian start-ups finance growth using instruments like CCPS, venture debt, and iSAFE notes. Capital structure evolves with milestones, requiring sequencing of funds to minimize WACC, manage forex risk ...

The prolonged softness in commodity prices has deteriorated the profitability of oil and gas companies worldwide, forcing them to raise additional debt in order to sustain their operations. This, ...