Adjusted Present Value for Optimizing Debt
The excel model spreadsheet summary provides a picture of your firm's current cost of capital and debt ratio, and compares it to your firm's value at every debt ratio, incorporating the tax benefits from debt & the expected bankruptcy costs at each level of debt.
This spreadsheet allows you to compute the optimal capital structure for a non-financial service firm.
Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)
This spreadsheet allows you to compute the optimal capital structure for a non-financial service firm.
Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)