The profitability – risk relationship and financing decision

Nicoleta Barbuta Misu
Authors registered in the RePEc Author Service: Nicoleta Bărbuţă-Mişu

MPRA Paper from University Library of Munich, Germany

Abstract: The enterprise financial decision is a rational process for option to the optimal variant related to financing and investments. For the capital investment to be justified, the profitability of the invested money must be at least equal with the profitability of the alternative investment opportunities with the same risk on market. The choosing of a way for financing is determined on the one side by their cost and on the other side by the existent capital structure. In this paper I tried to analyse the profitability – risk relationship in the financing decision for the “NIKOS” Ltd.

Keywords: financing decision; profitability; risk; market value of the enterprise; capital structure (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2007
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Published in The Annals of "Dunarea de Jos" University of Galati. Economics and Applied Informatics I.XIII(2007): pp. 55-62

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Journal Article: The Profitability – Risk Relationship and Financing Decision (2007)
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