Long term financing decision at the level of companies
AbstractDebates 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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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17527.
Date of creation: 2009
Date of revision:
Publication status: Published in Annals of the „Constantin Brâncuşi” University of Târgu Jiu, 1/2009 ISSN 1844-7007.Econom(2009): pp. 35-48
financing firms management investments reduction of the cost of borrowed capital;
Other versions of this item:
- Dobrota Gabriela & Chirculescu Maria Felicia, 2009. "Long Term Financing Decision at the Level of Companies," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 35-48, May.
- D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
- G1 - Financial Economics - - General Financial Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-03 (All new papers)
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