What is Optimal Capital Structure?

“The optimal capital structure is estimated by calculating the mix of debt and equity that minimizes the weighted average cost of capital (WACC) while maximizing its market value. The lower the cost of capital, the greater the present value of the firm’s future cash flows, discounted by the WACC. Thus, the chief goal of any corporate finance department should be to find the optimal capital structure that will result in the lowest WACC and the maximum value of the company (shareholder wealth).”

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How to say sorry when you mess up

So, you’ve done it again - you’ve put your foot in your mouth, and said something without thinking, and now you’ve hurt somebody else in the process! The words dropped out of your mouth before you engaged your brain. Sound familiar? This article explores how to say sorry when you have said the wrong thing.

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