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Asset Selection with Changing Capital Structure

Published online by Cambridge University Press:  19 October 2009

Edwin J. Elton  and
Martin J. Gruber
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Extract

One of the major problems in finance is that of combining the separate costs of debt and equity into an appropriate cutoff rate for new investment; this problem is particularly acute when the firm is changing its capital structure. Solutions to this problem which have been proposed include various types of both marginal costing and average costing.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 8 , Issue 3 , June 1973 , pp. 459 - 474
Copyright
Copyright © School of Business Administration, University of Washington 1973

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