Application of operational research techniques in capital structure decisions

Determining the best combination of corporate resources or capital structure is one of the most important issues that financial managers must consider maximizing shareholder wealth; combination of financial resources with characteristics such as low cost of capital can produce higher yields, and it claimed that optimal capital structure could increase the value of company and minimize the cost of capital. As regard to operational research (OR) research has played a decisive role in the development of financial theory and investment, this has led to a two-way relationship between finance and operational research techniques. As the various techniques of operational research have been used for financial affairs; therefore, financial theories require the development and improvement of the operational research solution techniques. Therefore, present study focus on application of operational research technique, which exist in structure.