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Comparing Capital Structure Policy between Computer Sciences Corporation and Hilton Worldwide Holdings Inc.

Haijun Chen

Abstract


The capital structure policy between information technologies giant Computer Sciences Corporation and largest hotel chains Hilton Worldwide Holdings Inc. are diff erent. Computer Sciences prefers equity fi nancing and Hilton Worldwide has a preference towards debt fi nancing. There are fi nancial advantages and disadvantages for Computer Sciences to fund its capital with equity, vice versa for Hilton Worldwide. It is necessary to make an appropriate capital structure decision for companies. Firms should optimize capital structure with both debt fi nancing and equity fi nancing. Firms should minimize uncertainties and financial risks of losing control over its capital structure.

Keywords


Capital structure, Computer Sciences Corporation, Hilton Worldwide Holdings Inc.

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References


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DOI: http://dx.doi.org/10.18686/fm.v6i3.3604

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