Study On Capital Structure Optimization Of LY Construction Company

Since the reform and opening up,the market economic system is gradually improving,the capital market is also developing.As China’s economic strength continues to increase,the construction industry in the national economy has been strengthened,while stimulating the steady development of the upstream and downstream industries and solving a large number of employment needs.In recent years,"Along the way" strategic ideas and the new urbanization process have provided a broad space for construction industry development.The construction industry is faced with challenges in fixed asset investment’s slowdown and the associated industries’ downturn.therefore helping the construction industry to upgrade,improving the efficiency of building enterprises to use the funds and maximizing the value of the company are essential.Optimizing the company’s capital structure is put forward with higher requirements.Based on the theoretical research on capital structure optimization at home and abroad,this paper chooses LY company as the research object,and uses static analysis and dynamic analysis to optimize the capital structure.First of all,according to the company’s financial situation and the status of capital structure,this paper analyzes that LY company has too high debt ratio,having unreasonable debt structure,less financing channels and other issues.Then.according to the optimization goal of maximizing the value of the capital,the paper puts forward the capital optimization path of LY from the static and dynamic perspectives.After calculating the optimal debt ratio under the static condition using the linear programming model.this paper considers the internal and external factors,in order to determine the ob.jective capital structure of LY company.Finally,the paper puts forward the concrete strategies of realizing capital structure optimization.According to the conclusions of static and dynamic optimization,combined with the objective capital structure interval and the environment of the enterprise,considering the problems existing in the current capital structure,the measures to ensure the optimization of capital structure are put forward.The optimization of capital structure of LY company also provides a reference for the capital structure optimization of similar enterprises in the same industry.