Capital Structure Decisions
Capital Structure Decisions refer to the strategic choices made by a company regarding the mix of equity and debt used to finance its operations and growth. These decisions involve determining the proportion of debt and equity in the company's capital structure in order to optimize financial performance and shareholder value. Factors considered in making these decisions include the cost of capital, risk tolerance, growth opportunities, and the company's overall financial health. The goal of capital structure decisions is to achieve an optimal balance that maximizes shareholder wealth while minimizing financial risk.