下載本文檔
版權說明:本文檔由用戶提供并上傳,收益歸屬內(nèi)容提供方,若內(nèi)容存在侵權,請進行舉報或認領
文檔簡介
1、ways to raise capitals for companiesabstract: the establishment, survival and development of the company are inseparable from the capitals. however, raising capitals involves many issues, in which the choice of the ways to raise capitals is one of the most important parts. this essay aims at discuss
2、ing the ways to raise capitals for companies by comparing different capital structure, analyzing different capital cost and contrasting different financing risk.key words: ways to raise capitals; capitals; cost1. introduction to the ways to raise capitalsthe ways to raise capitals is the concrete fo
3、rm of getting fund for the companies. in the market economy, there are two ways to raise capitals for companies. one way is endogenous financing, which means the process that the company will change their retained earnings and depreciation into investment. another way is foreign aid financing, which
4、 means the process that the company absorbs the capitals of other economic main body, so as to be transformed into the investment by themselves. with the development of technology and the expansion of production scale, only depending on endogenous financing is difficult to meet the companys fund dem
5、and, foreign aid financing has gradually become an important way to gain capitals for the companies. recently, the ways of foreign aid financing for companies are the followings: issuing stocks, issuing bonds, bank loan, trade credit, finance lease, absorbing direct investment, and so forth. 2. the
6、factors that influence the choice of the ways to raise capitals for companiesit is a very complex issue for companies to choose the ways to raise capitals. there will be different evaluations according to different standards of comparison. owing to various characteristics of the ways to raise capita
7、ls, while in choosing financing ways, the companies should choose the proper one rationally according to the needs of the production and management. there are the following factors in the process of choice.2.1 the amount of raising capitalsthe amount of raising capitals refers to the numbers of the
8、companies to raise fund, which is proportional to the demand for the capitals of the companies. the companies must determine the amount of raising capitals rationally according to the demand for the capitals.2.2 the cost of raising capitalsin a certain condition of the amount of raising capitals, th
9、e companies should consider further the cost of raising capitals. the cost of raising capitals is composed of different expenses that has been gained and used by the companies. in the circumstances that there are a variety of ways to choose, the companies should analyze the different cost of raising
10、 capitals and compare them, then find out the differences, at last choose the best ways to raise capitals which are suitable for the development of the companies. 2.3 the risk of raising capitalsthere are mainly two aspects of raising capitals for companies. one is the risk of operating the company
11、itself; another is the inherent financial risk in the capital market.optional risk is uncertain that the companies have themselves inherently in the income from operation and a pre-tax profits and interest. there are many factors that can influence the company operation, such as product requirement,
12、 price variation, operating leverage effect, and so on. however, these factors can be controlled to a certain degree. on the contrary, the other risk can not be controlled and avoided in the process of raising capitals for companies, which is the financial risk.financial risk is caused by financial
13、leverage, which is the extraneous risk that is undertaken by the companies and goes beyond the stock risk. financial leverage can make the companies after-tax profits change greatly, and increase the probability of the company to go bankrupt. but the companies can get the rising more quickly which i
14、s brought by the domino effect of financial level. if the company income is more than financing cost itself, this financing action is successful. 2.4 the profit of raising capitalsthe companies should consider the amount of the profit invested in the project when they evaluate and compare the differ
15、ent kinds of ways to raise capitals. this project would be feasible only when the anticipated income of the companies raising capitals project is more than the total cost of the raising capitals. in addition to the above factors, raising capitals for the companies is also restricted by the other obj
16、ective conditions, such as the size of the company, the credit rating of the company, social relations, and other factors.3. the choice of the ways to raise capitals3.1 the choice of different capital structurethe capital structure will have an influence on the ways to raise capitals for companies i
17、n different forms. some companies, whose conserve equipment assets have a large proportion and whose equipments leave unused, can lease their idle equipment. then the companies rent into equipments needed by themselves by means of finance lease for production and operation. in doing so, they can not
18、 only use their idle resources, but also make production profit by the ways of finance lease to use other companies capitals.3.2 the choice of different cost of capitalsbecause the amount of the financing cost is different, when choosing the ways of raising capitals, the companies should consider th
19、e financing cost. for example, a company may meet the problems of long-term loan and finance lease. when using the long-term loan, the company may add the ratio between liabilities and assets, the capital structure would be deteriorated, and thus the operating pressure would be brought to the compan
20、y. on the contrary, the finance lease will be different. the cost is only the expense that should be paid for the quota at regular intervals. the rent paid by the lessee can be deducted from the sales income before tax. the real financing cost paid by the lessee will be reduced greatly. so finance l
21、ease is the worth choosing ways to raise capitals.3.3 the choice of different risks of raising capitalsin general, raising capitals by stock finance has little financial risk, as there is not fixed due date and there is no need to pay for fixed interests. absorption direct investment is the relation
22、ship of joint venture, joint adventure and sharing profit, so the financial risk is also little. if only considering the risk of raising capitals, these two ways can be regarded as a kind of good choice. bond financing is just on the contrary. issuing bonds needs to pay back principal and interest b
23、ecause there is the fixed due date. when the companies become depression, this way may add the pressure for them and even may lead to bankruptcy.3.4 the choice of different scale of companiesgenerally speaking, the capital requirement of large company is big. their capitals are used in the aspects o
24、f enlarging the productivity, developing new product and technology transformation. when choosing the ways to raise capitals, they should take into consideration the ways which can provide a large amount of capitals and the long due time. issuing bonds should be better that issuing stocks, even thou
25、gh bonds need to pay some interests and may have a higher risk, compared with the stocks which have higher cost and are difficult to control. the capital requirement of small and medium companies is less. the companies mainly put their capitals into the products in short supply or meet the needs of
26、short-term capital turnover. when choosing, they should consider the ways of raising capital faster and high resilience, such as short-term loan and trade credit. for the small and medium companies, the trade credit should be given priority to choose. there are two reasons. firstly, the capitals of
27、trade credit come from the related companies. during the trade, there is understating and mutual trust, so that the risk may be relatively small. secondly, the requirement for trade credit is low than the other. there is no need for the collateral and no costs for assets assessment, notarization and
28、 registration.4. conclusionat present, with the establishment and development of the socialist market economy system, the raising capitals action for the companies has become a complex and systematic project; meanwhile, it is an important financing activity that is related to company as a whole. therefore, when raising capitals, the companies should hold the careful and scientific attitude. after very careful mar
溫馨提示
- 1. 本站所有資源如無特殊說明,都需要本地電腦安裝OFFICE2007和PDF閱讀器。圖紙軟件為CAD,CAXA,PROE,UG,SolidWorks等.壓縮文件請下載最新的WinRAR軟件解壓。
- 2. 本站的文檔不包含任何第三方提供的附件圖紙等,如果需要附件,請聯(lián)系上傳者。文件的所有權益歸上傳用戶所有。
- 3. 本站RAR壓縮包中若帶圖紙,網(wǎng)頁內(nèi)容里面會有圖紙預覽,若沒有圖紙預覽就沒有圖紙。
- 4. 未經(jīng)權益所有人同意不得將文件中的內(nèi)容挪作商業(yè)或盈利用途。
- 5. 人人文庫網(wǎng)僅提供信息存儲空間,僅對用戶上傳內(nèi)容的表現(xiàn)方式做保護處理,對用戶上傳分享的文檔內(nèi)容本身不做任何修改或編輯,并不能對任何下載內(nèi)容負責。
- 6. 下載文件中如有侵權或不適當內(nèi)容,請與我們聯(lián)系,我們立即糾正。
- 7. 本站不保證下載資源的準確性、安全性和完整性, 同時也不承擔用戶因使用這些下載資源對自己和他人造成任何形式的傷害或損失。
最新文檔
- 小學數(shù)學計算題-解方程(學生版)
- 《供水管道清洗技術標準》(征求意見稿)
- 2023年文案試用期工作總結與計劃
- 我做了一件好事作文
- 金珠砂梨生產(chǎn)技術規(guī)程DB41-T 828-2013
- 節(jié)能減碳量評估技術要求 第六部分:電子視像產(chǎn)品(征求意見稿)
- 2024年單一稀土氧化物及鹽類合作協(xié)議書
- 山東省青島市2020屆高三地理二模試題
- 山東省濟寧市2020屆高考地理模擬線上檢測試題含解析
- 專題1 認識更大的數(shù)(數(shù)與代數(shù))-2023-2024學年四年級上冊數(shù)學寒假專項提升(北師大版)
- 2024年蘇州市職業(yè)大學單招職業(yè)技能測試題庫及答案解析
- 牛津自然拼讀課件Phonics worldJKL
- 2022年4月自考00659新聞攝影試題及答案含解析
- 《為什么要證明》示范公開課教學設計【北師大版八年級數(shù)學上冊】
- 2024年度2024年校長信息化領導力培訓班學習心得體會
- 《電力系統(tǒng)治安反恐防范要求 第5部分:太陽能發(fā)電企業(yè)》
- 鑄牢中華民族共同體教案范文(通用篇)
- 醫(yī)學文獻檢索與文獻管理技巧
- 母嬰阻斷培訓課件總結
- 小學三年級體育上冊教案-(全冊)
- 可見的學習與思維教學
評論
0/150
提交評論