In this approach to Capital Structure Theory, the cost of capital is a function of the capital structure. It's important to remember, however, that this approach assumes an optimal capital structure .

The Modigliani-Miller theorem states that a company’s capital structure doesn’t affect its value in perfect markets. While this theory is one of the foundational theories on capital structure ...

HighPeak Energy increased production by 10% in 2024 with fewer rigs and a significantly lower capital budget. Read why I remain very bullish on HPK stock.