Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147728
Authors: 
Brusov, Petr N.
Filatova, Tatiana
Orekhova, Natali
Year of Publication: 
2014
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 2 [Year:] 2014 [Issue:] 1 [Pages:] 2-13
Abstract: 
Under condition of proved by us insolvency of well-known classical trade off theory it becomes important to identify mechanisms for forming the optimal capital structure of a company. This paper presents one of the real such mechanisms based on the decrease of debt cost with leverage, which is determined by growth of debt volume. This mechanism is absent in perpetuity Modigliani-Miller theory, even in modified version, developed by us, and exists within more general modern theory of capital cost and capital structure by Brusov-Filatova-Orekhova, or BFO theory.
Subjects: 
optimal capital structure
trade off theory
Brusov-Filatova-Orekhova (BFO)theory
Modigliani-Miller theory
JEL: 
G10
G11
D1
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/
Document Type: 
Article

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