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Raising Capital

Autor:   •  March 11, 2013  •  Case Study  •  1,539 Words (7 Pages)  •  942 Views

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INTRODUCTION

Subject ways to increase the capital is always relevant, as the company's management must be clear, at the expense of some renewable resources, it will work, and in any sphere of activity is to invest their capital.

Caring for the provision of business the necessary financial resources are crucial to any business activity.

Therefore, analysis of the availability, source of capital formation and distribution of vital importance.

Task analysis:

- The study of the composition, structure and dynamics of the sources of capital formation companies;

- Identification of factors change their values;

- Determination of the value of individual sources of capital raising and its average price, as well as changes in the factors of the latter;

- Assessment of financial risk (the ratio of debt and equity);

- Evaluation of the changes in the liability balance in terms of improving the financial sustainability of the enterprise;

- Rationale for the optimal variant of the ratio debt to equity.

The purpose of this course is to study the basic ways to increase capital.

In line with the tasks were set: the study of literature on the subject, the disclosure of the general characteristics of debt, the analysis of forms borrowing capital, conclusions.

1. THEORETICAL BASIS OF THE CONCEPT OF "CAPITAL"

1.1 General description of capital

Capital - this means at the disposal of a business entity to perform its activities with a view to profit.

Formed as a business capital from its own (internal) or by borrowing (external) sources.

The main source of financing is equity.

Figure 1 - Composition of equity companies

The composition of shareholders' equity includes share capital, accumulated capital (reserve and additional capital, the foundation of the social sphere, retained earnings) and other income (targeted funding, charitable donations, etc.).

Share capital - a sum of money for the founders of the authorized activity. State-owned enterprises - the cost of the property belonging to the state for the company with the rights of its own; on joint ventures - the nominal value of shares in limited liability companies - the amount of share owners, to lease the enterprise - the sum of the contributions

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