Capital structure analysis and the ponder — Datang international power generation company limited

摘要

Capital structure theory focuses on long-term debt capital and equity capital ratio of movements on the impact of enterprise value. Enterprises can analyze its financial risk condition through the research of their capital structure and choose appropriate financing way according to the current situation of the capital structure. Electricity is a pillar industry of the national economy, and plays an irreplaceable role. Power companies are asset-intensive business, they have large scale of assets. Therefore, optimization of capital structure is an important issue. In the fin anco practice, power companies should choose the financing structure properly. This article will select Datang international power generation company limited as a case for the company's capital structure analysis and put forward suggestions on how to optimize capital structure.