Question

briefly explain traditional capital structure theory​

Answer 1

The Traditional Theory of Capital Structure states that when the Weighted Average Cost of Capital (WACC) is minimized, and the market value of assets is maximized, an optimal structure of capital exists. ... A blend of equity and debt financing can lead to a firm's optimal capital structure.

Answer 2

The Traditional Theory of Capital Structurestates that when the Weighted Average Cost of Capital (WACC) is minimized, and the market value of assets is maximized, an optimal structure of capital exists. ... A blend of equity and debt financing can lead to a firm's optimal capital structure