Problems of financial provision for enterprise's economic growth

Abstract

Scientists discussions has for a long time centred on the decreasing investments and the difficult liquidity situation which most companies face. The capital structure is one of the primary factors, allowing to optimize the size of investments and reach sustainable development over the medium to long term. Now managers are more and more asked by a question to determine a target capital structure for their firms. The capital structure concerns the proportion of capital that is obtained through debt and equity. There are tradeoffs involved: using debt capital increases the risk associated with the firm's earnings, which tends to decrease the firm's stock prices. At the same time, however, debt can lead to a higher expected rate of return, which tends to increase a firm's stock price. When you are citing the document, use the following link http://essuir.sumdu.edu.ua/handle/123456789/8159