Long term financing decision at the level of companies

Gabriela Dobrota and Felicia Maria Chirculescu

MPRA Paper from University Library of Munich, Germany

Abstract: Debates on the financing needs registered a firm levels were a constant concern of specialists but especially managers. Majority opinion is that the financing of investment must be made by sources having character of permanence. However, a problem whose answer is not easily determined is the degree to which it may use its own sources, borrowed or rented, to record the lowest financing cost. Since the shareholders require a higher remuneration of capital investments superior to those on the financial market, managers must seek to reduce the cost of borrowed capital and the growth rate of financial return. In this paper are presented issues relating to the structure and potential sources and funding the decision on cost related to each funding opportunities.

Keywords: financing; firms; management; investments; reduction; of; the; cost; of; borrowed; capital (search for similar items in EconPapers)
JEL-codes: D53 G1 (search for similar items in EconPapers)
Date: 2009

Published in Annals of the „Constantin Brâncuşi” University of Târgu Jiu, 1/2009 ISSN 1844-7007.Economy Series(2009): pp. 35-48

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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:17527

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