Capital structure as a determinant of company value

Abstract

Profit represents the goal of every producing company. In order for a company to be able to produce a product or provide a service it must have certain capital at its disposal. There are two types of capital and it's necessary to determine their relations, how it affects the business, its profit and value. We will perform an analysis of one production company. Based on its financial reports and using the method of comparison, we will compare key parameters that will enable us to achieve the necessary information and achieved goal.

Keywords

• company
• own capital
• borrowed capital
• financial risk
• return rate