Model of identification of optimal capital and debt structures: Wal-Mart and Lufthansa cases

Abstract

The goal: Develop capital and debt structure identification model for default and interest rate risks optimization Tasks: identify factors that can determine capital or debt structure, examine risks that can be mitigated by capital or debt structure, establish a standard capital and debt structure calculation procedure, apply established procedure to real firm, compare obtained results with observed capital and debt structure, analyze results of procedure applications. Results: Developed capital and debt structure management model for optimization of default and interest rate risks, example of application of the model on Wal-Mart and Lufthansa cases.