The Influence of Company's Capital Cost on Investment Decision

dc.contributor.author	Toma, Dorina Emilia
dc.date.accessioned	2015-11-10T08:39:14Z
dc.date.available	2015-11-10T08:39:14Z
dc.date.issued	2014
dc.identifier.issn	1584-0409
dc.identifier.uri	http://10.11.10.50/xmlui/handle/123456789/3630
dc.description	Annals of “Dunarea de Jos” University of Galati Fascicle I. Economics and Applied Informatics	en_US
dc.description.abstract	This paper is aimed at highlighting the importance of the cost of capital as a discount rate of investment in making an investment decision in the ROMNAV Brăila company. This study carefully puts forward the existence of four possible cases to which companies may belong: unlevered and investments to maintain the productive capacity will be made; indebted and investments to maintain the productive capacity will be made; unlevered and new investments will be undertaken and indebted and new investments will be undertaken. The results of the study show that the average cost of capital is higher when the company turns to debt; the market value of the company is higher when it is indebted and new investments will be made and the cost of capital can be used as a discount rate of the company assessment	en_US
dc.language.iso	en	en_US
dc.publisher	“Dunarea de Jos” University of Galati	en_US
dc.subject	Opportunity cost of capital	en_US
dc.subject	Rate of return	en_US
dc.subject	Discount rate of an investment	en_US
dc.title	The Influence of Company's Capital Cost on Investment Decision	en_US
dc.type	Article	en_US