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Modern Methods of Evaluation of Cost and Capital Structure with Attention to the Risks
[Современные Методы Оценки Стоимости И Структуры Капитала С Учетом Риска]

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  • Minasyan, Vigen (Минасян, Виген)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

Deterining the structure and the correct calculation of the value of capital the company is a major theoretical and practical problems Corporate Finance. As you know, the maximization of the company's values ??- the main purpose of financial management, and on how the rest of the proportion of between equity and debt capital, risk and return depends company, and, therefore, the welfare of its owners. Most general recommendation is to determine the capital structure based on market ratio between debt and equity. However, in first place, the proportion of the market often do not accord with those values, the results are obtained estimations. Ie because of the weak market efficiency, input data contradict the results which are calculated based on them. Second, not all companies have representative market quotation. The question arises: how to correctly evaluate the capital and its market structure for individual projects and companies in general?

Suggested Citation

  • Minasyan, Vigen (Минасян, Виген), 2015. "Modern Methods of Evaluation of Cost and Capital Structure with Attention to the Risks [Современные Методы Оценки Стоимости И Структуры Капитала С Учетом Риска]," Published Papers mn26, Russian Presidential Academy of National Economy and Public Administration.
    • Handle: RePEc:rnp:ppaper:mn26
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    References listed on IDEAS

    as
    1. Fama, Eugene F. & French, Kenneth R., 1993. "Common risk factors in the returns on stocks and bonds," Journal of Financial Economics, Elsevier, vol. 33(1), pages 3-56, February.
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    Keywords

    evaluation; capital cost; capital structure; risks;
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