The Effects of Indebting the Entity as a Result of Choosing Long Term Financing

Horia Cristea and Claudiu Boțoc
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Horia Cristea: West University of Timișoara
Claudiu Boțoc: West University of Timișoara

CECCAR Business Review, 2020, vol. 1, issue 4, 38-45

Abstract: The company’s financial support policies represent the result of all the methods, processes and rules applied in order to efficiently combine the financing resources, in time. Any financing method or combination thereof is selected on the basis of the effort involved and the leveraging the financing cost and the result generated and computed as a rate of return or as other forms for expressing leverage.

Keywords: cost of capital; degree of indebtedness; breakeven; financing sources; risks of indebtedness (search for similar items in EconPapers)
JEL-codes: G11 G17 G19 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ahd:journl:v:1:y:2020:i:4:p:38-45

DOI: 10.37945/cbr.2020.04.05

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