Ata30%debtratio,thecostofcapitalisminimizedat7.95%;
it is about 0.73% lower than the current cost of capital.
Ifweassume thattheonlythingwechange atSAP isthe
financingmixandwemovethefirmtoitsoptimaldebtratio
of30%(andtheresultinglowercostofcapital),thevalueof
SAPasacompanywillincrease.InFigure13.3,weshowthe
restructuredvaluationofSAPwiththischangeandarriveata
valueof118.50eurospershare.Thevalueofcontrolinthe
caseof SAP isa relatively paltry 12.4 euros per share or
about12%ofequityvalue(valueofcontrol=118.5−106.1=
12.4).
FIGURE 13.3SAP: Value with Changed Financing