The Firm's Optimal Debt-Equity Combination and the Cost of Capital

S-Tier
Journal: Quarterly Journal of Economics
Year: 1967
Volume: 81
Issue: 4
Pages: 547-578

Authors (2)

William J. Baumol Burton G. Malkiel (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I. The problem, 547. — II. Cost of capital: whose opportunity cost? 548. — III. A few formal relationships, 549. — IV. A diagrammatic approach to cost of capital, 552. — V. Transactions costs and taxes in practice, 555. — VI. A few comments on the opportunity loci, 559. — VII. Characteristics of an optimal financial structure, 561. — VIII. The real marginal cost of debt and equity, 564. — IX. A measure of the cost of capital, 567. — X. Capital as a weighted average, 569. — XI. Conclusion, 571. — Appendix A, 571. — Appendix B, 575.

Technical Details

RePEc Handle
repec:oup:qjecon:v:81:y:1967:i:4:p:547-578.
Journal Field
General
Author Count
2
Added to Database
2026-01-24