Corporate Finance Structure And Its Optimization Problem

With the deepening development of economy institution and finance reform in our country, financing system of enterprises also have undergone great changes. Under such a circumstance, We can help choose reasonable financing means for our enterprises, which will result in forming an optimum capital structure, only as we realize the characateristics of various financing means and master the relationship between their financing cost, structure and enterprise market value. With the help of comprehensive analysis to the subject of western financing structure and its optimizing process, we can have a clear understanding on the matter of enterprise capital structure, which will absolutely help us analyze how to choose the proper financing means and how to arrange a more reasonable enterprise capital structure under the new financing environment. All these analyses above just have one aim, to realize the greatest market value and optimum capital structure of enterprises.The thesis is composed of five parts:Part I ,THE MODERN CAPITAL STRUCTURE THEORY. Capital structure theory focus on the relationship between capital structure and enterprise market value. This part introduces the main parties of capital structure theory according to their birth date. These capital theories will lay theoretical basis for the later optimizing analysis.Part II ,THE COMPARISION OF ENTERPRISE FINANCING MEANS AND PROCEEDS. This part introduces the financing types and comparison between costs and proceeds of different types, which is the first starting of capital structure analysis.Part III,THE OPTIMIZING ANALYSIS OF ENTERPRISE CAPITAL STRUCTURE. This is the main part of the thesis, the optimizing process of capital structure is classifies into three steps: the financing scheme is feasible or not; effect of financial lever profit and financial risk; the realization of the greatest value of enterprise and lowest WACC, which provide an effective analytical instrument forstudying our country's enterprise capital structure.Part IV,THE DETERMINANTS OF CAPITAL STRUCUTRE AND THE EFFECT OF STOCK INTREST POLICY ON ENTERPRISE MARKET VALUE. This part introduces determinants of enterprise capital structure and the process how to affect, and the relationship of stock interest policy and market value.Part V, THE ANALYSIS OF ENTERPRISE CAPITAL STRUCTURE IN OUR COUNTRY AND OPTIMIZING POLICY. This part mainly tells the current situation of our enterprises' choice on financing means and capital structure; Finally, it introduces the development trend of enterprise capital structure.