本科毕业论文（设计）外文翻译Optimizingthecapitalstructure:FindingtherightbalancebetweendebtandequityJustover50yearsagoMillerandModigliani(1958)showedthatunderacertainsetofconditions—namelyperfectcapitalmarketswithnotaxesandagencyconflicts—afirm’scapitalstructureisirrelevanttoitsvaluation.Theirresultsarecontroversialandhaveraisedalargenumberofquestionsfromacademicsandpractitioners.Thisarticlesummarizesthemainissuesunderlyingthechoicebyfirmsofanappropriatecapitalstructure,takingintoaccounttheirspecificfundamentalsaswellasmacroeconomicfactors.Itpresentsthebenefitsandcostsofborrowing,describeshowtoassessthesetoarriveatthebasictrade-offbetweendebtandequity,andexaminesconditionsunderwhichdebtbecomesirrelevant.TypesofFinancingTherearethreefinancingmethodsthatcompaniescanuse:debt,equity,andhybridsecurities.Thiscategorizationisbasedonthemaincharacteristicsofthesecurities.DebtFinancingDebtfinancingrangesfromsimplebankdebttocommercialpaperandcorporatebonds.Itisacontractualarrangementbetweenacompanyandaninvestor,wherebythecompanypaysapredeterminedclaim(orinterest)thatisnotafunctionofitsoperatingperformance,butwhichistreatedinaccountingstandardsasanexpensefortaxpurposesandisthereforetax-deductible.Thedebthasafixedlifeandhasapriorityclaimoncashflowsinbothoperatingperiodsandbankruptcy.Thisisbecauseinterestispaidbeforetheclaimstoequityholders,and,ifthecompanydefaultsoninterestpayments,itwillbedeclaredbankrupt,itsassetswillbesold,andtheamountowedtodebtholderswillbepaidbeforeanypaymentsaremadetoequityholders.EquityFinancingEquityfinancingincludesowners’equity,venturecapital(equitycapitalprovidedtoaprivatefirminexchangeforashareownershipofthefirm),commonequity,andwarrants(therighttobuyashareofstockinacompanyatafixedpriceduringthelifeofthewarrant).Unlikedebt,itispermanentinthecompany,itsclaimisresidualanddoesnotcreateataxadvantagefromitspaymentsasdividendsarepaidafterinterestandtax,itdoesnothavepriorityinbankruptcy,anditprovidesmanagementcontrolfortheowner.HybridSecuritiesHybridsecuri