What is the Optimal Financial Structure Applicable to All Companies

Abstract

To maximize value, companies must adopt the optimal financial structure. However, identifying this structure is not easy. Literature does not give satisfactory results. To remedy this difficulty, we have sought the optimal financial structure applicable to all companies. Thus, in a new approach by the cost of capital, using modelling, we identify an optimal financial structure model that can neutralize the risk of default of debt:   D/K  with t ? i but t > i.