Author(s): Kwame Asante
The optimization of capital structure is a critical decision in corporate finance, influencing a company's financial health and its ability to achieve strategic objectives. This article explores various strategies for balancing debt and equity to optimize capital structure. By examining theoretical frameworks, empirical evidence, and practical considerations, the article provides a comprehensive guide for corporate financial managers. Key factors such as cost of capital, financial flexibility, risk management, and market conditions are discussed. The article also highlights the implications of capital structure decisions on shareholder value, corporate governance, and overall financial performance