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Long term financing decision at the level of companies

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Author Info
Dobrota, Gabriela
Chirculescu, Felicia Maria

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Abstract

Debates on the financing needs registered a firm levels were a constant concern of specialists but especially managers. Majority opinion is that the financing of investment must be made by sources having character of permanence. However, a problem whose answer is not easily determined is the degree to which it may use its own sources, borrowed or rented, to record the lowest financing cost. Since the shareholders require a higher remuneration of capital investments superior to those on the financial market, managers must seek to reduce the cost of borrowed capital and the growth rate of financial return. In this paper are presented issues relating to the structure and potential sources and funding the decision on cost related to each funding opportunities.

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File URL: http://mpra.ub.uni-muenchen.de/17527/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17527.

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Date of creation: 2009
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Publication status: Published in Annals of the „Constantin Brâncuşi” University of Târgu Jiu, 1/2009 ISSN 1844-7007.Economy Series(2009): pp. 35-48
Handle: RePEc:pra:mprapa:17527

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Related research
Keywords: financing firms management investments reduction of the cost of borrowed capital;

Find related papers by JEL classification:
D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
G1 - Financial Economics - - General Financial Markets

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This page was last updated on 2009-12-8.


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