OJSC Silvinit Capital Structure Modeling

Abstract

Authors: Igor Aleksandrovich Belozerov, HSE

Marina Borisovna Nikityuk HSE

Nikolaeva Maria Sergeevna: National Research University "Higher School of Economics" (HSE)

Tatyana Vladimirovna Petrunina: National Research University "Higher School of Economics" (HSE)

Sukhanova Maria Sergeevna: National Research University "Higher School of Economics" (HSE)

An article represents a comprehensive overview of approaches to capital structure modeling on the example of the public corporation Silvinit. At first, there are provided a short review of the company and of the corresponding industry followed by the description of how the analogues for the company were chosen. The next part of the article gives a step-by-step description of the practical implementation of such models as WACC model, EBIT-EPS, method of operational profit. Monte-Carlo approach is used for demonstrating an influence of the leverage increase on tax and interest payments as well as company’s default risk. In conclusion the authors compare the results of different approaches with the current capital structure of Silvinit.