The Capital’s Election Criteria Used in the Financial Management of a Company’s Financing Decision

Camelia Oprean-Stan and Constantin Oprean ()
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Constantin Oprean: University Lucian Blaga of Sibiu, Romania

REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, 2009, vol. 10, issue 2, 229-242

Abstract: The optimization of the capital structures of a company after the cost criteria represents a profitable activity, provided that it is well conceived, organized and carried out. For this consideration, the capital’s structure and their medium cost is an important profit source for the company, so the profit comes from this source, and not from the exploitation activity or other financial sources or traditional exceptive. In conclusion, the cost of the capital has to be previewed; the company has to build an adequate strategy and tactical procedures to accomplish this challenge. Besides the capital’s cost, in this paper we present some other criteria that can interfere in the choice of the financing method, all depending on the financial situation of each company and on its strategy.

Keywords: cost; financial structure; shareholders’ equity; debt. (search for similar items in EconPapers)
JEL-codes: E44 P34 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:rom:rmcimn:v:10:y:2009:i:2:p:229-242

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