Advanced Search
MyIDEAS: Login

The Financial Structure Influence on the Cost of Capital and Enterprise Value

Contents:

Author Info

  • Nicoleta BARBUTA-MISU

    ()
    (Dunarea de Jos University of Galati, Romania)

Abstract

All enterprises seek to maximise the value of the assets and minimize the costs. Thus, they will explore the weighting of each way of financing (own funds or debt) in total financing, i.e. optimize the financial structure of the enterprise and maximising its value. On the other hand, they are trying to determine the weighting of each way of financing, that leads to maximising of the enterprise value and to minimise the cost of capital. So, the paper present the arbitrage used by an investor into an enterprise without debts and into an enterprise indebt, using the model Modigliani and Miller, relating to the financing policy neutrality towards the average cost of capital and the value of the enterprise.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ann.ugal.ro/eco/Doc2009_2/Misu.pdf
Download Restriction: no

Bibliographic Info

Article provided by "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration in its journal Economics and Applied Informatics.

Volume (Year): (2009)
Issue (Month): 2 ()
Pages: 77-84

as in new window
Handle: RePEc:ddj:fseeai:y:2009:i:2:p:77-84

Contact details of provider:
Postal: No. 59-61, Nicolae Balcescu Street, Postal Code 800008, Galati
Phone: (0040) 336.130.242
Fax: (0040) 336.130.242
Email:
Web page: http://www.feaa.ugal.ro
More information through EDIRC

Related research

Keywords: capital structure; cost of capital; tax savings; return on assets; return on equity;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ddj:fseeai:y:2009:i:2:p:77-84. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gianina Mihai).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.