CONSIDERATIONS REGARDING METHODS AND VALUATION MODELS OF EQUITY COST OF THE COMPANIES

Mihai Nedelescu ()
Additional contact information
Mihai Nedelescu: Romanian American University, Bucharest

Romanian Economic Business Review, 2013, vol. 8, issue 1, 19-33

Abstract: For the enterprises, capitals are fewer and fewer and more expensive, and the expected profit in conditions of fierce competition, are more difficult, being accompanied by increasing risks more difficult to predict.The cost is the highest risk element, which accompanies the capital, because, is in inverse proportion to the profit: a higher cost leads to a lower profit. For attracting the sources of capital, a firm must spend certain sums, which are proportional to their price. The content of this paper tries an efficiency of financial structure for companies based on the minimizing of finance costs.In the purpose of efficiency of financial structure has followed the costs for variant of financial structure through point out models of analyses and assemble the costs recommended by international and national specialty literature.

Keywords: capital cost; financial structure; financial sources; financial cost; efficiency (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.rebe.rau.ro/RePEc/rau/journl/SP13/REBE-SP13-A2.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:rau:journl:v:8:y:2013:i:1:p:19-33

Access Statistics for this article

More articles in Romanian Economic Business Review from Romanian-American University Contact information at EDIRC.
Bibliographic data for series maintained by Alex Tabusca ().