Capital structure

If the company has a range of capital structures available to it, do you choose the one that maximises EPS or minimises WACC? Answer: The one that minimises WACC, but I thought it should be the one that maximises EPS?

nopes MIN(WACC) or MAX(Value)

i hope there’s corp fi q’s on MM theory stuff in corp fi on one set and the other one with cash flows and salvage values, etc, or EAA whatevers. less mergers will be good for bannisja. that’s my weakest spot in corp fi. oh yeah, and nobody loves corp governance. ss8 is my friend. ss9, not so much. minimize the WACC yo.

swaptiongamma Wrote: ------------------------------------------------------- > nopes > > MIN(WACC) or MAX(Value) You are such an engineer/computer scientist/scholar :wink:

damn damn damn damn damn thanks guys

that’s very true Ali

TheAliMan Wrote: ------------------------------------------------------- > swaptiongamma Wrote: > -------------------------------------------------- > ----- > > nopes > > > > MIN(WACC) or MAX(Value) > > > You are such an engineer/computer > scientist/scholar :wink: lol