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  • February 1979
  • Background Note
  • HBS Case Collection

Note on the Theory of Optimal Capital Structure

By: William E. Fruhan Jr.
  • Format:Print
  • | Pages:7
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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

Citation

Fruhan, William E., Jr. "Note on the Theory of Optimal Capital Structure." Harvard Business School Background Note 279-069, February 1979.
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About The Author

William E. Fruhan

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  • The Case of the Unidentified Industries—2018 By: Mihir A. Desai, William E. Fruhan, Jr., Leanne Fan and Adil Bhatia
  • The Case of the Unidentified Industries—2018 By: Mihir A. Desai, William E. Fruhan and Leanne Fan
  • Burton Sensors, Inc., Spreadsheet for Instructors (Brief Case) By: William E. Fruhan and Wei Wang
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