Influence the capital structure on the cost of capital and enterprise value in multinationals
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.
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- Singh, Kuljot & Hodder, James E., 2000. "Multinational capital structure and financial flexibility," Journal of International Money and Finance, Elsevier, vol. 19(6), pages 853-884, December.
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- Hoffjan, Andreas & Rosmann, Michael, 2002. "Capital structure design of foreign subsidiaries in multinational corporate groups with a German parent company," Arbeitspapiere des Lehrstuhls für Betriebswirtschaftslehre, insbesondere Controlling 4-1, University of Münster, Chair of Management Accounting.
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