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Introduction

  • Peter Brusov
  • Tatiana Filatova
  • Natali Orekhova
  • Mukhadin Eskindarov
Chapter

Abstract

One of the main problems in corporate finance is the problem of cost of capital and the impact of capital structure on its cost and capitalization of the companies. To date, even the question of the existence of an optimal capital structure of the companies (at which the company capitalization is maximal, and weighted average cost of capital is minimal) is open. Numerous theories and models, including the first and the only one until recently quantitative theory by Nobel Laureates Modigliani and Miller (MM) (Modigliani and Miller, Am Econ Rev 48:261–297, 1958; Am Econ Rev 53:147–175, 1963; Am Econ Rev 56:333–391, 1966), not only do not solve the problem but also because of the large number of restrictions (such as, e.g., theory of MM) have a weak relationship with the real economy. Herewith the qualitative theories and models, based on the empirical approach, do not allow to carry out the necessary assessment.

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Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Peter Brusov
    • 1
  • Tatiana Filatova
    • 1
  • Natali Orekhova
    • 2
  • Mukhadin Eskindarov
    • 1
  1. 1.Financial University under the Government of Russian FederationMoscowRussia
  2. 2.Center of Corporate Finance, Investment, Taxation and RatingsThe Research Consortium of Universities of the South of RussiaRostov-on-DonRussia

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