|
ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
Our journal is currently indexed in the following databases:
|
| |
Article from Volume 8, Number 3, Year 2020| ANALYSIS ON THE CAUSALITY RELATIONSHIP BETWEEN INVESTMENTS AND THE CAPITAL'S MARGINAL COST | 
Download | | Author(s): Irina Cibotariu | | DOI: 104316/EJAFB.2020.838 | | Abstract: Capital's cost is the result of two kinds of behaviours, namely the entrepreneur's behaviour, on the one hand, and the investor's behaviour. These two types of behaviours have a common background, namely maximizing the value of the business entity. The business entity itself can be considered as the very expression of the financing costs which are part of the optimization process of its financial strategy. The diversity of the investment options requires the assignment of those financial resources which are based on estimating the entity's value which refers to the conversion of the future incomes into the present turnover of the business as such. Thus, there is an occasional cost from the point of view of the investors, whereas for the users, there is an average cost involved due to the fact that one needs to take into account the existence of the financial structure itself which is responsible for the existence of both the equity and the loan capital. | | Keywords: Capital's Cost, Investments, Marginal Cost; Profitability, Investors, Financial Structure, Loan Capital, Financing Decision | References:
1. Cocri?, V., I?an, V. (1995). Economia Afacerilor, 3rd Volume, Graphix , Iasi, Romania.
2. Berceanu, D. (2001). The Entity’s Financial Policies, Universitaria, Craiova, Romania.
3. Eakins, S.G. (1999). Finance-investments, Institutions And Management, Addison-Wesley, Massachuttes.
4. Frischmann, Brett M. (2012). Infrastructure: The Social Value Of Shared Resources, Oxford University Press, NY.
5. Gavrila?, Gh. (2007). Capital’s Cost, Economica, Bucharest, Romania
6. Gordon, M.I., Shapiro, C. (1956). Capital Equipament Analyses; The Required Rate Of Profit, Management Science, 3(1), 102-110, Https://doi.org/10.1287/mnsc.3.1.102
7. Halpern, P., Weston, J.F., Brigham, E.F. (1998). Finan?e Manageriale, Economic?, Bucharest, Romania.
8. Hogendorn, C. (2012). Spillovers And Network Neutrality. In Regulation And The Performance Of Communication And Information Networks. Edward Elgar.
9. Nistor, I.I. (2002). Finantele Intreprinderii, Presa Universitar? Clujean?, Cluj-Napoca, Romania.
10. Stancu, I. (2008). Finan?e. Teoria Pie?elor Financiare. Finan?ele întreprinderii. Analiza ?i Gestiunea Financiar?, Economic?, Bucharest, Romania
11. Todea, A. (2003). Managementul Investi?iilor Pe Pia?a De Capital, Casa C?r?ii De ?tiin??, Cluj-Napoca, Romania.
|
| | Back to journal ... |
|
|
| |
|
|
|
