CFA book Volume3-Module7 (last chapter in the book 😀) **📅 Date:** ➤ ⌈ [[2025-08-11-Mon〚 How Lifelong Flavour Habits Shape the Brain▪Capital Structure〛]]]⌋ **💭 What:** ➤ 对于成熟的公司用Pecking Order 比较多，对公司影响比较小，AB 轮Optimal 和Weight比较多一点 ➤ 🐦 ==Pecking Order Theory== 融资顺序理论 - 企业在选择融资的时候有一个偏好顺序 - internal found first (retained earnings留存收益) - debt (债务融资的最低成本低于股权融资) - equity last **👀 Snap:** ![[Screenshot 2025-08-11 at 20.53.35.png]] ⇩ 🅻🅸🅽🅺🆂 ⇩ **🏷️ Tags**: #💰/Economy **🗂 Menu**: ⌈[[✢ M O C ➣ 08 ⌈A U G - 2 0 2 5⌉ ✢|2025 - A U G - MOC]]⌋ ⌈[[✢ L O G ➢ 08 ⌈A U G - 2 0 2 5⌉ ✢|2025 - A U G - LOG]] ⌋ #👾/Private ➤ ⌈[[💰 L055-02 Business Model — Key Features & Case Study]]⌋ ➤ ⌈[[💰 L055-03-Types of Business Models]]⌋ ➤ ⌈[[💰 L055-04 + History of Consulting Companies]]⌋ ---- ## 1. Optimal Capital Structure **Definition:** The mix of **debt, equity, and preferred stock** that **minimizes WACC** and **maximizes firm value**. - 债务、股权和优先股的组合，使 **WACC（加权平均资本成本）最低** 且 公司价值最大化 **Key Points:** - Balances **tax benefits of debt** (interest tax shield) with **costs of financial distress** and **agency conflicts**. - **WACC curve** is **U-shaped** — the minimum point = optimal capital structure. --- ## 2. Target Capital Structure **Definition:** The **long-term capital structure** a firm aims to maintain over time. **Features:** - Expressed as **target weights** (e.g., 60% equity: 40% debt). - Guides financing decisions and project return evaluations. - **Short-term deviations** are possible due to market conditions, timing, or strategic events. --- ## 3. Target Weights and WACC 目标权重 #### Important: - **Reflect long-term strategic plan** — not short-term market fluctuations. - Based on: 1. **Market values** ✅ (preferred by analysts) 2. Book values 3. Management estimates --- ## 4. Pecking Order Theory 融资顺序理论 **Definition:** Firms **prefer** financing in this order: 1. **Retained earnings** (no cost, no dilution) 2. **Debt** (cheaper than equity, no ownership loss) 3. **Equity** (most expensive, dilution, negative signal) **Implications:** - Highly profitable firms → use **less debt**. - Financing choice depends on **availability**, not a fixed optimal mix. - **Equity issuance** often viewed negatively (possible overvaluation). --- ## Summary Table | **Concept** | **Key Focus** | ** Tip** | | ----------------------------- | ------------------------------------ | ---------------------------------------- | | **Optimal Capital Structure** | Min WACC, Max Firm Value | Trade-off theory applies | | **Target Capital Structure** | Long-term funding plan | Used in WACC calculations | | **Target Weights** | Proportions of debt/equity/preferred | Use market values when possible | | **Pecking Order Theory** | Financing hierarchy based on cost | Contrasts with optimal structure concept | --- ### Extra Notes #### Optimal capital structure: 融资的时候做决定，发债还是发股，作为CEO做决定要有用什么方法来做这个决定 WACC 越小越好 Max Firm Value #### Target Weights ie: 60% or 40% 你需要算出WACC - **Optimal Capital Structure** → 理论最佳点（最小 WACC） - **Target Capital Structure** → 企业实际长期想要保持的比例 - **Target Weights** → 用于计算 WACC 的权重数据 - **Pecking Order Theory** → 企业融资的先后顺序偏好