APPLYING THE M&M THEORY IN DECIDING THE CAPITAL STRUCTURE AT VANG DANH COAL JOINT STOCK COMPANY – VINACOMIN

Abstract
Vang Danh Coal Joint Stock Company – Vinacomin has improperly concerned with finding the most reasonable capital structure. This company still overlooks the task of determining the ratio between debt and equity to minimize the average total cost of capital and maximize the value of the business. The author analyzed the data from 2016 to 2018 and showed that the ratio between equity and debt is unreasonable, leading to poor business results. Therefore, in this study, the author applied M&M theory not only to calculate the reasonable capital structure for the highest value of Vang Danh Coal company, but also to ensure the effectiveness of the impact of financial leverage on the cost of capital.
Keywords: M&M theory, capital structure, Vang Danh Coal – Vinacomin.
JEL classification: G; G32

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Ban biên tập Tạp chí Kinh tế & Quản trị Kinh doanh
Phòng 514, Nhà điều hành, trường Đại học Kinh tế & Quản trị Kinh doanh
Địa chỉ: Phường Tân Thịnh, thành phố Thái Nguyên
Email: tapchikt-qtkd@tueba.edu.vn; Điện thoại: 0208.3903373