<P> The Thomson Financial league tables show that global debt issuance exceeds equity issuance with a 90 to 10 margin . </P> <P> The structure of capital should be determined considering the weighted average cost of capital . </P> <P> If there were no tax advantages for issuing debt, and equity could be freely issued, Miller and Modigliani showed that, under certain assumptions, the value of a leveraged firm and the value of an unleveraged firm should be the same . </P>

How to calculate cost of equity capital using capm