The financial structure influence on the cost of capital

The goal of any business is to maximize assets and minimize costs. In this regard, it is necessary to analyze the weight of each financing state (own funds or debts) in the share of total financing. In other words, all companies are looking to optimize their financial structure and to maximize its value. Thus, this paper intends to analyze the neutrality of the financing policy against the average cost of capital, using the model of Moglidiani and Miller. The neutrality of the relationsheep between financing policy and average cost of capital is analyzed using a linear regression model, where the dependent variable is the weighted average cost of capital (WACC), and the independent variable is considered the financial structure, represented by the financial leverage. The model will be applied to all companies active in the wholesale of motor vehicle parts and accessories (NACE 4531), with extended financial statements. The results obtained using the Eviews software demonstrate the initial hypothesis.