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Background Note
| HBS Case Collection
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1979
Note on the Theory of Optimal Capital Structure
by
William E. Fruhan Jr.
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Abstract
Examines the interrelationship between the maximization of the share value of a firm's common stock and the minimization of the firm's weighted average cost of capital. Presents a revised version of a case by J.W. Mullins, Jr.
Keywords: Capital Structure;
Cost of Capital;
Stock Shares;
Core Relationships;
Value;