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zafar
 3 years ago
How can I find optimal debt ratio for the company I am analyzing?
zafar
 3 years ago
How can I find optimal debt ratio for the company I am analyzing?

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business1
 3 years ago
Best ResponseYou've already chosen the best response.0i would calculate cost of capital at each debt/capital level from may be 20%, in 10% increments, up to 60%. at whatever level the cost of capital is lowest, that is the optimal debt load.

rai_90
 3 years ago
Best ResponseYou've already chosen the best response.0If there is no tax advantage for issuing debt, do not issue debt. Some middle eastern nations have zero tax rate.

gloomberg
 3 years ago
Best ResponseYou've already chosen the best response.0by optimal, u mean from whose perspective? credit agency? equity analyst? internal valuation?
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