IDEAS home Printed from https://ideas.repec.org/a/aio/rteyej/v1y2009i13sp66-72.html
   My bibliography  Save this article

The Cost Of Capital – An Important Criterion In Fundamenting The Financing Decision Of The Company

Author

Listed:
  • Ph.D Student Ignatescu Valentina Diana

    (University “Alexandru Ioan Cuza”, Faculty of Economics and Business, Administration, Iasi, Romania)

Abstract

Through this paper we want to identify which are the main factors that influence the company's financing decision. And from all the factors we will analyze the cost of capital. We would like to see what role plays the cost of the capital in fundamenting the financing decision and what are the main methods of determining the cost of own capital and the cost of borrowed capital. Determining the cost of capital plays an important role for companies, their objective being the choice of those sources of funding which have the lower cost.

Suggested Citation

  • Ph.D Student Ignatescu Valentina Diana, 2009. "The Cost Of Capital – An Important Criterion In Fundamenting The Financing Decision Of The Company," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(13S), pages 66-72, November.
  • Handle: RePEc:aio:rteyej:v:1:y:2009:i:13s:p:66-72
    as

    Download full text from publisher

    File URL: http://feaa.ucv.ro/RTE/013S-09.pdf
    Download Restriction: no

    More about this item

    Keywords

    the financing decision; minimize the costs; weighted average cost of capital; cash flow; yield to maturity;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:rteyej:v:1:y:2009:i:13s:p:66-72. 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: (Ionascu Costel). General contact details of provider: http://edirc.repec.org/data/fecraro.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.