Relationship Between Capital Structure And Cost Of Capital Pdf

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relationship between capital structure and cost of capital pdf

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This paper investigates the determinants of the capital structure of large corporations headquartered in the United States and Korea.

This research established simultaneous equations of capital structure and corporation performance, applicant INN to estimate the equation and then find out the interactive relationship between capital structure and corporation performance. The results show that capital structure and corporation performance exist interactive relationship and capital structure, growth ability, equity concentration, board and corporation scale will significantly influence corporation performance. Profitability, growth ability, debt paying ability, collateral value of assets and enterprise scale will significantly influence capital structure.

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. Kaviani and S. Fahim and M. Batebi and M.

A Comparison of Capital Structure Determinants: The United States and The Republic of Korea

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Capital structure is very important, especially the decision which concern with this problem, because the profitability of a company is directly affected by such decision. The successful choice and use of capital is one of the key components of the enterprises financial strategy. This means that it is the vital to pay attention and proper care capital structure. The aim of this paper is to investigate the relationship between capital structure and profitability of the limited liability companies from an agricultural sector in the Czech Republic over the past six year period from to Data was obtained and processed from the database of enterprises of Albertina and was analyzed by using descriptive statistics, i. The results of this paper describe a small negative correlation between the debt ratios and profitability ratios.

Skip to Main Content. A not-for-profit organization, IEEE is the world's largest technical professional organization dedicated to advancing technology for the benefit of humanity. Use of this web site signifies your agreement to the terms and conditions. Free cash flow has significant impact on agency cost. The combination of research on these two fields would help to build and extend the theoretical system. Based on agency cost theory, the present study firstly categorized the characteristics of free cash flow as well as the statistical methodologies.

A Comparison of Capital Structure Determinants: The United States and The Republic of Korea

A survey of the relation between capital structure and corporate strategy. Gerace , University of Wollongong. This paper responds to the general call for integration between finance and strategy research by examining how financial decisions are related to corporate strategy. In particular, the paper focuses on the link between capital structure and strategy. Equity and debt must be considered as financial instruments as well as strategic instruments of corporate governance Williamson Debt subordinates governance activities to stricter management, while equity allows for greater flexibility and decisionmaking power.

In economics and accounting , the cost of capital is the cost of a company's funds both debt and equity , or, from an investor's point of view "the required rate of return on a portfolio company's existing securities". It is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. For an investment to be worthwhile, the expected return on capital has to be higher than the cost of capital. Given a number of competing investment opportunities, investors are expected to put their capital to work in order to maximize the return. In other words, the cost of capital is the rate of return that capital could be expected to earn in the best alternative investment of equivalent risk; this is the opportunity cost of capital. If a project is of similar risk to a company's average business activities it is reasonable to use the company's average cost of capital as a basis for the evaluation or cost of capital is a firm's cost of raising funds. However, for projects outside the core business of the company, the current cost of capital may not be the appropriate yardstick to use, as the risks of the businesses are not the same.

Cost of capital

 В такой одежде ты тут ничего не добьешься. Беккер нахмурился. - Я вовсе не хочу с ней переспать.

 - Я… я не понимаю. - Я не могу, - повторила.  - Я не могу выйти за тебя замуж.  - Она отвернулась. Ее плечи подрагивали.

 - Скажи, что он нашел кольцо. Но коммандер поймал ее взгляд и нахмурился. Значит, это не Дэвид.

The Relationship between Capital Structure and Commercial Bank Performance: A Panel Data Analysis

Компьютерные вирусы столь же разнообразны, как и те, что поражают человека. Подобно своим природным аналогам они преследуют одну цель - внедриться в организм и начать размножаться. В данном случае организмом является ТРАНСТЕКСТ.

The Relationship between Capital Structure and Commercial Bank Performance: A Panel Data Analysis

Когда он наконец заговорил, голос его звучал подчеркнуто ровно, хотя было очевидно, что это давалось ему нелегко. - Увы, - тихо сказал Стратмор, - оказалось, что директор в Южной Америке на встрече с президентом Колумбии.