Financing Management of Companies

Eleonora Kontuš ()
Additional contact information
Eleonora Kontuš: University of Rijeka

Chapter Chapter 1 in Governing Business Systems, 2018, pp 1-23 from Springer

Abstract: Abstract The aim of this paper is, firstly, to explore the short- and long-term sources of financing available to companies, and secondly, to determine the sources of short- and long-term financing to be employed on the basis of lowest cost criteria and taking into account the importance of scientifically-based financial management. A company should consider the cost of all available sources along with their impact on its profitability and solvency, and decide on the optimal amount of short- and long-term sources of financing and their optimal composition from the cost-effective point of view. In determining which sources of short- and long-term financing to employ, it is important to take into consideration the cost of all sources available to companies and choose those most appropriate in terms of effective after-tax interest rate because this is what represents the real cost of financing. The result of the work will provide equations for calculating an effective interest rate for different short- and long-term financing sources available to companies.

Keywords: Short-term financing sources; Long-term financing sources; Cost of financing; Effective interest rate after tax (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:prbchp:978-3-319-66036-3_1

Ordering information: This item can be ordered from
http://www.springer.com/9783319660363

DOI: 10.1007/978-3-319-66036-3_1

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().