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Influence the capital structure on the cost of capital and enterprise value in multinationals

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  • NICOLETA BARBUTA-MISU

    (Business Administration Department, “Dunarea de Jos” University of Galati)

Abstract

The main problems identified in determination of capital structure are referred to identifying the source of relevant funds, evaluation of risks generated by using some funds and their costs in order to ensure the autonomy of the enterprise. The objective of any company is to achieve optimal capital structure, which is approached by minimizing average cost of capital and maximizing the market value of the company. Thus, this paper aims to study the influence of capital structure on the cost of capital and enterprise value, in the case of two multinational companies, in order to identify optimal financial structures, and the differences between them.

Suggested Citation

  • Nicoleta Barbuta-Misu, 2012. "Influence the capital structure on the cost of capital and enterprise value in multinationals," EuroEconomica, Danubius University of Galati, issue 4(31), pages 7-20, November.
    • Handle: RePEc:dug:journl:y:2012:i:4:p:7-20
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    References listed on IDEAS

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    9. Mari Avarmaa & Aaro Hazak & Kadri Männasoo, 2011. "Capital structure formation in multinational and local companies in the Baltic States," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 11(1), pages 125-146, July.
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    Cited by:

    1. Florentina MOISESCU & Madalina Cosmina MANOLE & Cristina Georgiana DASCALEANU, 2012. "Investments in Human Capital in Romania," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 71-78.

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