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The Capital Structure of the Firm: The Leverage Decision

  • A. Koutsoyiannis
Chapter

Abstract

In this chapter we examine the factors that managers take into account when deciding how much debt to use in the capital structure of the firm. This decision is important, because it determines the cost of capital to the firm, which is a widely used criterion for optimal investment decisions (see Chapter 11).

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Copyright information

© A. Koutsoyiannis 1982

Authors and Affiliations

  • A. Koutsoyiannis
    • 1
  1. 1.University of WaterlooCanada

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