Corporate capital choices are affected by number of different factors. No unified theory of capital structure has been developed up to now. However, current explanations of corporate financial policy may be grouped into three main categories: taxes, agency costs and information costs. A search for optimal capital structure is aimed at: maximizing tax advantage of debt and reduction of agency costs and information costs resulting from corporate debt choices, All financial decisions should led to increasing company's market value.
A company must raise sufficient capital to supply its long-term needs for fixed-asset investments and its must do so at the lowest possible cost. Capital can be taken from two sources: from debt by borrowing long-term funds in the market, and from equity by issuance of common or preferred stock, or by retaining and accruing earnings. The most frequent instruments if financing company in the last period include franchising and leasing.
The article refers to problems connected with the occurrence of risk, which is appearing during business activities. It contains classification of risk types, witch the present day company is most exposed to. The right estimation of risk is an indispensable condition of the correct estimation of cash flows and expenses connected with realization of examined investment projects and the right qualification of present net values of these undertakings. The estimation of risk and its influence is one of the most important elements in the calculation of the profitability of these undertakings.
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