Organizations may have sources of funding. Classification of sources of financing of entrepreneurial activity. Included in equity are

The financial resources of an entrepreneurial firm are divided into own and borrowed according to their origin. Own financial resources are formed from internal and external sources.

Internal sources include:

1. profit remaining at the disposal of the company, which is distributed by the decision of the governing bodies;
2. depreciation deductions, which are a monetary expression of the cost of depreciation of fixed assets and intangible assets and are an internal source of financing for both simple and expanded reproduction.

External sources include:

1. additional issue of securities, through which there is an increase in the share capital of the company, as well as attracting additional share capital through additional contributions to the authorized capital;
2. gratuitous financial assistance - these can be budget allocations on a non-refundable basis, as a rule, they are allocated to finance government orders, certain socially significant investment programs or as state support for enterprises whose production is of national importance;
3. tangible and intangible assets transferred to firms free of charge, included in their balance sheet;
4. loans, which include:

   a) bank loans;
   b) borrowed funds from other enterprises and organizations;
   c) funds from the issuance and sale of the company's bonds;
   d) funds from extrabudgetary funds;
   e) budget allocations on a returnable basis, etc.

Attracting borrowed funds allows the company to accelerate the turnover of working capital, increase the volume of business operations performed, and reduce work in progress. However, the use of this source leads to certain problems associated with the need for subsequent servicing of debt obligations assumed. As long as the amount of additional income secured by the attraction of borrowed resources covers the cost of servicing the loan, the financial position of the company remains stable.

If these indicators are equal, the question arises of the advisability of attracting borrowed sources of financial resources formation as they do not provide additional income. In a situation where the cost of servicing accounts payable exceeds the amount of additional income from its use, the deterioration of the financial situation, the reduction in profits, the further increase in debt, the loss of financial independence are inevitable - the company actually begins to work not for itself, but for its creditors.

Results in any area of ​​business depend on the availability and efficiency of the use of financial resources, which are equated to the "circulatory system" that ensures the life of the organization.

Therefore, taking care of finances is the starting point for the activity of any business entity. In a market economy, these issues are of paramount importance.

Funding sources are functioning and expected channels for obtaining funds, as well as a list of economic entities that can provide these funds.

Sources of financing of the enterprise are divided into internal and external.

Sources of own funds are:

authorized capital (funds from the sale of shares and share contributions of participants);

reserves accumulated by the enterprise;

other contributions of legal entities and individuals (targeted financing, donations, charitable contributions, etc.).

The main sources of funds raised include:

bank loans;

borrowed funds;

proceeds from the sale of bonds and other securities;

accounts payable.

The fundamental difference between the sources of own and borrowed funds lies in the legal reason - in the event of the liquidation of the enterprise, its owners have the right to that part of the property of the enterprise that will remain after settlements with third parties.

The main sources of financing are own funds. We give a brief description of these sources.

The authorized capital is the amount of funds provided by the owners to ensure the statutory activities of the enterprise. The content of the category "authorized capital" depends on the organizational and legal form of the enterprise:

for a state-owned enterprise - the valuation of property assigned by the state to the enterprise on the right of full economic management;

for a limited liability partnership - the sum of the shares of the owners;

for a joint-stock company - the total nominal value of shares of all types;

for a production cooperative -- the valuation of the property provided by the participants for conducting activities;

for a leased enterprise - the amount of contributions of employees of the enterprise;

for an enterprise of a different form, allocated to an independent balance sheet - a valuation of property assigned by its owner to the enterprise on the right of full economic management.

When creating an enterprise, contributions to its authorized capital can be cash, tangible and intangible assets. At the time of the transfer of assets in the form of a contribution to the authorized capital, the ownership of them passes to the economic entity, i.e., investors lose property rights to these objects. Thus, in the event of the liquidation of the enterprise or the withdrawal of a participant from the company or partnership, he has the right only to compensate for his share within the residual property, but not to return the objects transferred to him in due time in the form of a contribution to the authorized capital. The authorized capital, therefore, reflects the amount of the company's obligations to investors.

The authorized capital is formed during the initial investment of funds. Its value is announced at the time of registration of the enterprise, and any adjustments to the size of the authorized capital (additional issue of shares, reduction in the nominal value of shares, making additional contributions, admission of a new participant, joining part of the profit, etc.) are allowed only in cases and in the manner prescribed by the current legislation and constituent documents.

The formation of the authorized capital may be accompanied by the formation of an additional source of funds - share premium. This source arises when, during the initial issue, shares are sold at a price above par. Upon receipt of these amounts, they are credited to additional capital.

Profit is the main source of funds for a dynamically developing enterprise. In the balance sheet, it is present explicitly as retained earnings, and also in a veiled form - as funds and reserves created from profits. In a market economy, the amount of profit depends on many factors, the main of which is the ratio of income and expenses. At the same time, the current regulatory documents provide for the possibility of a certain regulation of profits by the management of the enterprise. These regulatory procedures include:

variation in the boundary of attributing assets to fixed assets;

accelerated depreciation of fixed assets;

the applied depreciation method for low-value and wearing items;

the procedure for valuation and amortization of intangible assets;

the procedure for assessing participants' contributions to the authorized capital;

choice of method for estimating inventories;

the procedure for accounting for interest on bank loans used to finance capital investments;

the procedure for creating a reserve for doubtful debts;

the procedure for attributing certain types of expenses to the cost of goods sold;

the composition of overhead costs and the way they are distributed.

Profit -- the main source of formation of reserve capital (fund). This capital is intended to compensate for unforeseen losses and possible losses from economic activity, that is, it is insurance in nature. The procedure for the formation of reserve capital is determined by the regulatory documents governing the activities of an enterprise of this type, as well as its statutory documents.

Additional capital as a source of enterprise funds is formed, as a rule, as a result of revaluation of fixed assets and other material assets. Regulatory documents prohibit its use for consumption purposes.

A specific source of funds are funds for special purposes and targeted financing: donated valuables, as well as non-refundable and repayable state appropriations for financing non-production activities related to the maintenance of social, cultural and municipal facilities, for financing the costs of restoring the solvency of enterprises located on full budget financing, etc. .

Comparison of various methods of financing allows the company to choose the most optimal option for financial support of operations and capital expenditures. It should also be noted that the development of the long-term loan market in Russia is possible only if the economic system is stabilized, i.e. overcoming the decline in production, reducing the rate of inflation (up to 3-5% per year), reducing the discount rate of bank interest to 15-20% per annum, eliminating a significant budget deficit.

External financing - the use of funds from the state, financial and credit organizations, non-financial companies and citizens. External financing at the expense of own funds involves the use of financial resources of the founders (participants) of the enterprise. Financial support for entrepreneurial activities of this type is often the most preferable, as it ensures the financial independence of the enterprise and facilitates the conditions for obtaining bank loans (in the event of a shortage of liquid funds).

Debt financing is the provision of funds by creditors on the terms of repayment and payment. The content of this method is not in the participation of one's own funds in the capital of the enterprise, but in the usual credit relations between the borrower and the lender.

Debt financing is divided into two types:

through a short-term loan;

with a long-term loan.

Short-term borrowed capital serves as a source of financing for current assets (inventories, work in progress, seasonal costs, etc.). Prepayment by the customer of goods generates non-payments in the economy and can be considered as an interest-free loan to the supplier. Unlike in Russia, prepayment is rarely used by Western firms that work on deferred payment for goods (commercial credit) or on a system of discounts on the price of products (spontaneous financing).

Short-term attracted capital is provided by banks on the terms of a loan agreement with the borrower against the real security of his property.

Long-term attracted capital (in the form of a loan) is directed to the renewal of fixed assets and the acquisition of intangible assets.

Capital investments - investments in fixed assets (in fixed assets) include the costs of new construction, expansion, reconstruction and technical re-equipment of existing enterprises, the purchase of machinery, equipment, design and survey work, etc. Capital investments are financed both at the expense of own (net profit and depreciation), and at the expense of borrowed funds (funds of investors).

Compared to financing through loans obtained from the stock market (issuance of corporate bonds), the use of long-term debt secured loans provides the borrower with the following advantages:

funds are not spent on printing securities or their registration on electronic media, on issue, advertising and placement;

legal relations between the borrower and the lender are known to a limited circle of persons;

the conditions for granting a loan are determined by the partners in each transaction;

a shorter period between application and receipt of a loan compared to the receipt of funds from the stock market;

restrictions on the issue of bonds of a joint-stock company. Thus, the issue of bonds without property security is allowed not earlier than the third year of its existence and subject to the proper approval by this time of two annual balance sheets and full payment of the authorized capital. The Company is not entitled to issue bonds if the number of declared shares of certain categories and types is less than the number of categories and types, the right to purchase of which is provided by these securities.

Among borrowed sources of financing, the main role is usually played by long-term bank loans. This is the most common way to finance businesses.

Short-term financing is used, as a rule, to replenish working capital. The volume and structure of working capital vary depending on the industry of the enterprise, may be subject to seasonal and cyclical fluctuations, they also depend on the effectiveness of product portfolio management and working capital management strategy.

In finance, enterprises understand internal and external sources of financing, respectively, as their own and borrowed (borrowed) funds.

Domestic funding involves the use of those financial resources, the sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, depreciation, accounts payable, reserves for future expenses and payments, deferred income.

At external financing the funds coming into the organization from the outside world are used. Founders, citizens, the state, financial and credit organizations, non-financial organizations can be sources of external financing.

TO advantages of internal financing (equity) enterprises should be attributed no additional costs associated with raising capital from external sources; maintaining control over the activities of the enterprise by the owner; Ease, accessibility and speed of mobilization; Reducing the risk of insolvency and bankruptcy; Higher profitability due to the absence of the need for payments on attracted and borrowed sources; Preservation of ownership and management of the founders

disadvantage this type of enterprise financing is it is not always possible to apply it in practice; Limited volumes of fundraising; Diversion of own funds from economic turnover; Limited independent control over the efficiency of the use of investment resources.

Advantages of external financing (raised and borrowed capital) The ability to raise funds on a significant scale; Availability of independent control over the efficiency of use of investment resources.

Flaws The complexity and duration of the procedure for raising funds; The need to provide financial stability guarantees; Increased risk of insolvency and bankruptcy; Decrease in profit due to the need to pay for borrowed and borrowed sources; Possibility of loss of ownership and management of the company.

Advantages and disadvantages of the IRR indicator.

A universal tool for comparing the effectiveness of various methods of investing capital, characterizing the profitability of an operation and independent of the discount rate (from the cost of invested funds) is the indicator of internal rate of return.
The internal rate of return corresponds to the discount rate at which the present value of the future cash flow coincides with the value of the invested funds, i.e. satisfies the equality:

? CF k / (1 + IRR) k = ? INV t / (1 + IRR) t

To calculate this indicator, you can use computer tools or the following approximate calculation formula:

IRR = i 1 + NPV 1 (i 2 - i 1) / (NPV 1 - NPV 2)

Here i 1 and i 2 are rates corresponding to some positive (NPV 1) and negative (NPV 2) values ​​of net present value. The smaller the interval i 1 – i 2 , the more accurate the result obtained (when solving problems, the difference between the rates is considered to be no more than 5%).
The criterion for accepting an investment project is the excess of the IRR indicator of the selected discount rate (IRR > i) . When comparing several projects, projects with large IRRs are more preferable.
The undoubted advantages of the IRR indicator include its versatility as a tool for evaluating and comparing the profitability of various financial transactions. Its advantage is also independence from the discount rate - this is a purely internal indicator.
The disadvantages of IRR are the complexity of the calculation, the impossibility of applying this criterion to non-standard cash flows (the problem of the multiplicity of IRRs), as well as the need to reinvest all income received at a rate of return equal to the IRR implied by the calculation rule for this indicator. The disadvantages include a possible contradiction with the NPV criterion when comparing two or more projects.

The finances of an enterprise are the sum of all funds, both internal and external, that are in full use of the company and are used by it as a means of fulfilling debt obligations, directed to current expenses and to expanding the enterprise.

When money is present in the required amount, effectively used - this is the key to a successful business, its stability, liquidity and solvency.

The problem of choosing the most correct and best source of finance for the operation of the enterprise is attracting more and more attention from business owners.

The source of financing is stable, functional ways to receive funds and a list of economic entities that can provide such funds. It is important to choose the most profitable source of finance that would suit a particular project and bring the greatest dividends.

Financing is divided into the following types:

• Internal sources of funds;
• External sources;
• Mixed type.

Internal sources

The first and key sources of obtaining finance for the activities of the enterprise can be considered the organization's own funds. They contain:

• Initial capital
• Finances accumulated during the operation of the enterprise, formed internal reserve funds
• Other investments of private, legal entities

The capital of the enterprise is formed at the start of the creation of the organization, when its initial capital is formed - the total funds of the founders of the business invested in the property of the company in order to provide the necessary active scope. Such capital is also called authorized capital, and without it, the company will not be able to not only be created, but also to fully function in the future.

The ways of formation of such capital depend on the legal form of the organization chosen by the founders. However, regardless of this, all investments made in the authorized capital are further considered the property of the enterprise, and the investor cannot lay claim to them. So, in a situation where the company is liquidated or the investor wants to leave the founders, he is compensated only for his share of the remaining property, and the invested assets are not returned.

Where are these funds going? These are raw materials, wages for workers, energy resources, everything that is needed to produce goods and services requested by the consumer. He, in turn, pays for the final product, after which the invested funds are returned to the company's accounts. Further, funds for the needs of the organization are deducted, and the remaining money is considered the profit of the organization.

The amount of profit is associated with the fulfillment of certain conditions, the key of which is the ratio of income and expenses. However, the legal framework contains some procedures that regulate income, such as the procedure for assessing the depreciation of an asset and investments in authorized funds.

So, profit is the primary resource for the cash reserve. Such funds are needed to cover a sudden loss or loss, they provide some insurance against unforeseen circumstances. How to form a reserve is determined by the regulatory and statutory acts of the enterprise, as well as its organizational and legal form.

Savings and social funds are based on profit and are invested in: wages paid in excess of the established, bonuses, financial assistance, compensation for housing, meals, transport, VHI policies for employees.

In addition to such reserves, additional capital can also be attributed to the capital of the enterprise. His education comes from various sources, such as:

• Income from shares issued by the enterprise and sold for a high price;
• Funds resulting from the revaluation of the company's own property;
• The difference in exchange rates;

Additional capital can be used as a means to increase the authorized capital; repayment of debt and monetary losses during the calendar year; distributed among the owners of the organization.

The depreciation fund also refers to the internal sources of financing of the enterprise. It is the monetary value of the depreciation of funds and property assets and is considered a resource to finance both conventional and advanced production.

Both external and internal sources can also include targeted investments from the budget, from higher-ranking individuals and companies. Subsidies and subventions are especially allocated.

The first is funds from the budget, issued to the second person on the basis of equity financing.

The second is the provided budget funds for a specific target expenditure, without the need to return them.

The main feature of targeted support is that such money can only be used in specific areas and in accordance with the accompanying documentation. Such funds become part of the capital of the organization.

External sources

For the full functioning of the enterprise, there are not enough own funds. There are several reasons for this, for example, the maturities of debts tend to differ from sales proceeds. In addition, funds may not be sent on time, as well as various force majeure events. This also includes inflation (when depreciated funds cannot cover the cost of the necessary resources to continue the production process), the growth of the enterprise itself, the creation of branches and / or subsidiaries. In such situations, the company turns to external sources of funds.

Borrowed funds are considered a liability and are divided into short-term and long-term, which is related to the maturity. The latter, in turn, are divided into loans (maturity of a year or more) and other liabilities. Short-term liabilities include loans with a maturity of less than 12 months and debt on loans from suppliers, contractors, etc.

One of the most important external sources of financing is a loan issued by a banking institution. Previously, high interest rates made it impossible for many organizations to use lending as a source of funds, as it was beyond their means. However, at the moment, this method has become available to companies. Foreign banking institutions, in particular, offer lower interest rates and loan repayment options, which is a serious competition for Russian banks.

Lending is one of the sources of financing

Please note that loans can only be issued by licensed financial institutions.

Upon receipt of a loan, a contractual relationship is established between the recipient and the bank. An agreement, or bank contract, legitimizes the process, fixes all the nuances and, as a rule, has a standard form.

In contrast to the loan as an external source of financing, leasing has recently been used. Leasing is a form of renting almost any equipment or machinery, which can also provide for the transfer of ownership. Sometimes, when concluding a leasing contract, you can agree on more favorable terms. With a "leasing company" you can always discuss terms of repayment of leasing that are convenient for the company, leasing requires fewer documents for registration, and therefore takes less time than a loan.

In addition to various forms of loan commitments, government sponsorship programs should be mentioned. The state implements such programs in those sectors that are of interest to it. However, this kind of financing has certain difficulties, for example, an enterprise must fit the program according to the specified parameters, which can be difficult due to their extensive list.

Securities are also a peculiar way of external financing of the organization. Thus, it is possible to attract large capitalists, as well as the company will receive, perhaps a small, but guaranteed income. Thus, it is not necessary to count on the issue of shares as a permanent and main source of income, but it will definitely help to establish relationships with companies whose investments and experience can be useful to the company.

Pros and cons of external and internal sources

Internal sources, pluses

• Easy fundraising scheme, no need for additional permissions from other parties
• There are no additional interest payments

• Limited in the amount of funds, hence less opportunities for expansion, investment
• No increase in funds for invested monetary resources due to loans

External sources, pluses

• Unlimited in the amount of funds received
• Increasing the potential of the company in the modernization of its technical base, its development, growth
• Hence the increasing profit and the rise in profitability in general

• The more credit obligations the organization has, the less its financial stability, the higher the risk of bankruptcy
• Interest payments on loans reduce total profit
• Obtaining an external source of financing is associated with various bureaucratic difficulties and with the satisfaction of the conditions set by the bank.

The composition of the economic resources used by the organization is different. Of particular importance for the successful operation of the organization is the presence of a certain reserve of sources of financing.

Funding sources are the financial resources used to purchase assets and carry out transactions.

The sources of financing include short-term and long-term debt, preferred and ordinary shares (liability of the balance sheet).

An analysis of the structure of the balance sheet liability characterizing the sources of funds shows that their main types are: own and borrowed funds.

The sources of own funds are:

Authorized capital (funds from the sale of shares and share contributions of participants - the total nominal value of all types of shares, i.e., the authorized capital reflects the amount of all obligations of the company to investors, since in the event of its liquidation or withdrawal of a participant from its shareholders, the investor has the right only to compensation of their share within the residual property of the enterprise); the formation of the authorized capital may be accompanied by the formation of an additional source of funds - share premium, if during the initial issue the shares are sold at a price above par;

Reserves accumulated by the enterprise, including retained earnings;

Mobilization of internal assets (in the process of capital construction, the firm may form specific sources of financing, for example, the sale of a part of current assets);

Other contributions from legal entities and individuals (targeted funding, donations, charitable contributions, etc.).

The main sources of borrowed funds are:

Bank loans;

Postponement of tax payment;

Borrowed funds from other companies (loans of legal entities against debt obligations - promissory notes);

Funds from the sale of bonds (registered and bearer) and other securities to other companies;

Accounts payable (commercial loan);

Leasing (financial transaction for the use of property through rent).

The fundamental difference between sources of own and borrowed funds lies in the legal content - when a company is liquidated, its owners have the right to that part of the company's property that will remain after settlements with third parties.

The essence of the difference between own and borrowed funds is that interest payments are deductible before taxes, that is, they are included in expenses, and dividends on the owners' shares are deducted from profits after interest and taxes.

Depending on the duration of existence, the assets of the organization, as well as sources of funds, are divided into short-term (current) and long-term. Short-term sources include sources of financing attracted for a period of less than 1 year. Long-term sources are equity capital and borrowed capital attracted for a period of more than 1 year.

Own and borrowed capital is characterized by positive and negative features that affect the activities of the enterprise.

Equity capital is characterized by the following positive features:

1. Ease of attraction, since decisions related to the increase in equity capital (especially through internal sources of its formation) are made by the owners and managers of the organization without the need to obtain the consent of other business entities.

2. A higher ability to generate profit in all areas of activity, since when using it, the payment of loan interest in all its forms is not required.

3. Ensuring the financial sustainability of the development of the organization, its solvency in the long term, and, accordingly, reducing the risk of bankruptcy.

At the same time, negative features are also inherent in equity:

1. The limited volume of attraction, therefore, the possibility of a significant expansion of the operating and investment activities of the organization during periods of favorable market conditions.

2. High cost compared to alternative borrowed sources of capital formation.

3. An unused opportunity to increase the return on equity ratio by attracting borrowed financial resources, since without such attraction it is impossible to ensure that the financial profitability ratio of the organization's activities exceeds the economic one.

Thus, an organization that uses only its own capital has the highest financial stability (the autonomy coefficient is equal to one), but limits the pace of its development (because it cannot ensure the formation of the necessary additional volume of assets during periods of favorable market conditions) and does not use financial opportunities increase in return on invested capital.

Borrowed capital is characterized by the following positive features:

1. Sufficiently wide opportunities for attracting, especially with a high credit rating of the organization, the presence of collateral or a guarantee of the recipient.

2. Ensuring the growth of the financial potential of the organization, if necessary, a significant expansion of its assets and an increase in the growth rate of the volume of its economic activity.

3. Lower cost in comparison with equity due to the effect of a "tax shield" (withdrawal of the cost of its maintenance from the taxable base when paying income tax).

4. The ability to generate an increase in financial profitability (return on equity ratio).

At the same time, the use of borrowed capital has the following negative features:

1. The use of this capital generates the most dangerous financial risks in the activities of the organization - the risk of reducing financial stability and loss of solvency. The level of these risks increases in proportion to the growth in the share of borrowed capital used.

2. Assets formed at the expense of borrowed capital generate a lower (ceteris paribus) rate of return, which is reduced by the amount of loan interest paid in all its forms (interest on a bank loan; leasing rate; coupon interest on bonds; bill interest on commodity credit, etc.).

3. High dependence of the cost of borrowed capital on fluctuations in the financial market. In some cases, for example, with a decrease in the average loan interest rate in the market, the use of a previously received loan (especially on a long-term basis) becomes unprofitable for the organization due to the availability of cheaper alternative sources of credit resources.

4. The complexity of the attraction procedure (especially in large amounts), since the provision of credit resources depends on the decision of other business entities (lenders), in some cases it requires appropriate third-party guarantees or collateral (at the same time, guarantees from insurance companies, banks and other organizations are provided as usually for a fee).

Thus, an organization using borrowed capital has a higher financial potential for its development (due to the formation of an additional volume of assets) and the possibility of increasing the financial profitability of its activities, however, it generates financial risk and the threat of bankruptcy to a greater extent (increasing as the share of borrowed funds increases). funds in the total amount of capital used).

Any organization finances its activities, including investment, from various sources. As a payment for the use of financial resources advanced to the activities of the organization, it pays interest, dividends, remuneration, etc., i.e. incurs some reasonable costs to maintain its economic potential. As a result, each source of funds has its own value as the sum of the costs of providing this source.

The total amount of funds that must be paid for the use of a certain amount of financial resources, expressed as a percentage of this volume, is called the cost of capital (Cost of Capital, CC), i.e. The cost of capital is the ratio of the amount of funds that must be paid for the use of financial resources from a particular source to the total amount of funds from this source, expressed as a percentage. In the domestic literature, one can also find another name for the concept under consideration: the price of capital, the value of capital, the cost of capital, etc.

The indicator "cost of capital" has a different economic meaning for individual business entities:

a) for investors and creditors, the level of the cost of capital characterizes the rate of return required by them on the capital provided for use;

b) for business entities that form capital for the purpose of production or investment use, the level of its value characterizes the specific costs of attracting and servicing the financial resources used, i.e. the price they pay for the use of capital.

With this indicator, the organization evaluates how much should be paid for raising a unit of capital (both from a specific source of funds, and in the whole organization for all sources).

The concept of the cost of capital is one of the basic ones in the theory of the organization's capital. The cost of capital characterizes the level of return on invested capital required to ensure the high market value of the organization. The maximization of the market value of the organization is achieved to a large extent by minimizing the cost of the sources used. The indicator of the cost of capital is used in the process of evaluating the effectiveness of investment projects and the investment portfolio of the organization as a whole.

The indicator of the cost of capital is used in the process of evaluating the effectiveness of investment projects and the investment portfolio of the organization as a whole. The adoption of many financial decisions (the formation of a policy for financing current assets, the decision to use leasing, planning the operating profit of an organization, etc.) is based on an analysis of the cost of capital.

In the process of assessing the cost of capital, the cost of individual elements of equity and debt capital is first assessed, then the weighted average cost of capital is determined.

Determining the cost of capital of an organization is carried out in several stages:

1) the identification of the main components that are sources of formation of the capital of the organization is carried out;

2) the price of each source is calculated separately;

3) the weighted average price of capital is determined based on the share of each component in the total amount of invested capital;

4) measures are being developed to optimize the capital structure and form its target structure.

The cost of capital depends on its source (owner) and is determined by the capital market, i.e. supply and demand (if demand exceeds supply, then the price is set at a higher level). The cost of capital also depends on the amount of capital raised.

The main factors under the influence of which the cost of capital of an organization is formed are:

1) the general state of the financial environment, including financial markets;

2) commodity market conditions;

3) the average rate of loan interest prevailing in the market;

4) the availability of various sources of funding for organizations;

5) the profitability of the organization's operating activities;

6) the level of operating leverage;

7) the level of concentration of own capital;

8) the ratio of the volume of operating and investment activities;

9) the degree of risk of the operations being carried out;

10) industry specifics of the organization's activities, including the duration of the operating cycle

The level of cost of capital differs significantly for its individual elements (components). An element of capital in the process of assessing its value is understood as each of its varieties according to individual sources of formation (attraction). Such elements are the capital attracted by: 1) reinvestment of the profit received by the organization (retained earnings); 2) issue of preferred shares; 3) issue of ordinary shares; 4) obtaining a bank loan; 4) issue of bonds; 5) financial leasing, etc.

For a comparable assessment, the value of each element of capital is expressed as an annual interest rate. The level of value of each element of capital is not a constant value and fluctuates significantly over time under the influence of various factors.