THE COST OF CAPITAL – AN IMPORTANT CRITERION IN FUNDAMENTING THE FINANCING<br /> DECISION OF THE COMPANY
Journal Title: Revista Tinerilor Economisti - Year 2009, Vol 1, Issue 13
Abstract
Through this paper we want to identify which are the main factors that influence the company's financing decision. And from all the factors we will analyze the cost of capital. We would like to see what role plays the cost of the capital in fundamenting the financing decision and what are the main methods of determining the cost of own capital and the cost of borrowed capital. Determining the cost of capital plays an important role for companies, their objective being the choice of those sources of funding which have the lower cost.
Authors and Affiliations
Ignătescu Valentina Diana
Keywords
Related Articles
- EP ID EP107910
- DOI -
- Views 68
- Downloads 0
FOREIGN DIRECT INVESTMENT IN ROMANIA - RECENT TRENDS
Though some substantial gains in recent years, direct investment flows have remained relatively low compared to the potential of a market with great natural resources, skilled labor and flexible legislative environmen...
RISK AND PROFITABILITY IN BANKING SECTOR OF NEW MEMBERS STATES AND<br /> CANDIDATE COUNTRIES
With the recent accession of the new member states to the European Union, there is clearly a need for detailed analysis of their banking system risk and profitability. Rapid credit growth has been a recent feature of...
PERSONAL VERSUS MASS COMMUNICATION
From the comparison of the various aspects of advertising and personal selling, it can be seen that personal selling is a more effective and powerful communication tool than advertising, but advertising is more time a...
FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH
How does foreign direct investment triggered by foreign economic growth affect domestic economic activity? Estimates produced using foreign GDP growth rates for changes in foreign activity indicate that 10% greater fo...
PRAXEOLOGY IN MISES’S WORK
Praxeology is the science of human action and conduct. It is the study of those aspects of human action that can be grasped a priori; in other words, it is concerned with the conceptual analysis and logical implicatio...