The ﬁnancial management goal as it pertains to the capital structure of a ﬁrm is to operate at the point where the debt-equity mix:

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The financial management goal as it pertains to the capital structure of a firm is to operate at the point where the debt-equity mix maximizes the value of the firm. This means finding the optimal capital structure that balances the benefits and costs of using debt financing against equity financing. Maximizing the value of the firm typically means finding the capital structure that generates the lowest overall cost of capital, which ultimately leads to higher profitability and shareholder value.

The ﬁNancial Management Goal as It Pertains to the Capital