THE COST OF CAPITAL – AN IMPORTANT CRITERION IN FUNDAMENTING THE FINANCING DECISION OF THE COMPANY

Ph.D Student Ignatescu Valentina Diana
Additional contact information
Ph.D Student Ignatescu Valentina Diana: University “Alexandru Ioan Cuza”, Faculty of Economics and Business, Administration, Iasi, Romania
Authors registered in the RePEc Author Service: Valentina Diana Rusu

Revista Tinerilor Economisti (The Young Economists Journal), 2009, vol. 1, issue 13S, 66-72

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.

Keywords: the financing decision; minimize the costs; weighted average cost of capital; cash flow; yield to maturity (search for similar items in EconPapers)
JEL-codes: G30 G32 (search for similar items in EconPapers)
Date: 2009
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://feaa.ucv.ro/RTE/013S-09.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aio:rteyej:v:1:y:2009:i:13s:p:66-72

Access Statistics for this article

Revista Tinerilor Economisti (The Young Economists Journal) is currently edited by Ionascu Costel

More articles in Revista Tinerilor Economisti (The Young Economists Journal) from University of Craiova, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Ionascu Costel ().