Defining of the optimal capital structure of Finnish company Alma Media Corp. and Russian company RBC Informational technology

Abstract

In this article we analyze the optimal capital structure of Finnish company Alma Media Corp. and Russian company RBC “Informational technology”. To perform the task we apply traditional models of optimal capital structure such as EBIT-EPS approach, and modern methods such as model of operational income and Adjusted Present Value (APV). The research shows that the management of both companies took unreasonable decision related to the capital structure from the theoretical and recommended points of view. These ineffective decisions led to the decrease of companies’ value and are stipulated by stakeholder interests of Alma Media Corp. and RBC. Key words: optimal capital structure, media industry, WACC approach, cost oа debt