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According to the opening case about the Chinese startup Build Your Dreams (BYD),the ability to successfully enter and compete in the car industry demonstrates that a firm using new technology can circumvent many of the traditionally high entry barriers.
Target Capital Structure
The optimal mix of debt, equity, and other financing sources that a company aims to achieve to minimize cost of capital and maximize shareholder value.
Optimal Structure
The ideal mix of debt, equity, and internal funds that minimizes the cost of capital while maximizing shareholder value.
IRR
Internal Rate of Return, a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
Cost Of Capital
The minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital.
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