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Optimal Capital Structure: Debt vs. Equity

This rate is used to discount the future cash flows expected to help estimate the present value (PV) of earnings on the investment of capital. Ultimately, a lower cost of capital means a higher present value (PV) of the business’s future free cash flows. Read here: www.paci.ai/optimal-capital-structure-debt-vs-equity/

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Uploaded on February 20, 2023