Capital structure refers to the mix of funding sources a company uses to finance its assets and its operations. The sources typically can be bucketed into equity and debt. Using internally generated ...

A hallmark of most corporate finance classes is a dedicated treatment of capital structure, with particular emphasis given to finding the optimal mix of debt and equity. While textbooks typically ...

Using both debt and equity increases the aggregate value of tax options on the firm. Therefore, firm value may depend on capital structure, even in a Miller equilibrium. A simple two-state pricing ...