Economic-Mathematical Optimization Model of Capital Structure of the company and the Prospects of its Application

Abstract

The choice of optimal capital structure is one of the most important tasks solved by financial management and management of any company. This structure allows minimizing the weighted average cost of capital and increase the value of the company. The study of the problems of capital structure optimization and identifying the ways of their solution is an urgent task of strategic and financial management. Despite the fact that a large number of scientists and practitioners who have developed various theories, approaches and concepts to form the financial structure of a firm have been engaged and are currently engaged in solving this problem, the problem of formation of the company optimal capital structure is still far from the final solution. This article presents the results of the author's work in the direction of optimal capital structure formation. In particular, economic-mathematical model to find the optimal capital structure of the company is built and implemented on the example of telecommunication company. Based on the results of this work, we can conclude that the use of the proposed model by financial structures of telecommunication companies when planning financial and economic activities with the time horizon of 1 year will determine the capital structure that is the most suitable for future operating cycle. It will ensure stable financial condition of the company. Such calculations are especially important for businesses that are financially unsustainable in the market and develop the strategy to improve the efficiency of performance under real economic conditions and with their own capacities.