The aim of this study is to present methods of selecting the sources of financing an enterprise and to indicate measures and their interpretations that support the management of warehouse management, cash and receivables policy in order to maintain the capital structure at an optimal level. For the purposes of the analysis, an investment project was used, which is a capital company operating forecast for the first 6 years. The components of equity and external capital were indicated, justifying their choice with calculations and emphasizing that these decisions should always be adjusted to the specific needs of the enterprise. The values ​​of capital in terms of risk related to debt service, maintaining liquidity, increasing market share and cost rationalization were also described. Knowing the structure and cost of capital increases goodwill by increasing the present value of net cash flows generated from the company's assets.

Summary

The aim of this paper is to present methods of the selection of financing businesses sources and indication measure and their interpretation, which support the management of inventory, cash and receivables policy to maintain
a capital structure at an optimal level. The study was based on the investment project, which is a capital company conducting business projected for the first 6 years. Indicated components of equity and debt capital, justifying their choice of calculations and insisting that those decisions should always be adapted to the specific needs of the enterprise. Also describes the qualities of capital in terms of the risks associated with debt management, maintaining liquidity, enlargement market share and cost rationalization. Knowledge of the capital structure and capital cost increases the goodwill, by an increase in the present value of net cash flows generated from the assets of the company.

Introduction

Corporate financial management is the decisions and actions that should be taken to consciously influence the company's financial situation. On the basis of an investment project, the subject of which is a limited liability company producing houses for homeless cats, an analysis of the conduct of business for the first 6 years was carried out and the sources of its financing were selected, taking into account: availability of financial assets, reduction of risk related to debt service, maintaining liquidity, increasing market share and rationalizing costs. All numerical assumptions were estimated based on market data

and calculated in the Excel sheet. The aim of the article is to present an analysis that enables the selection of the optimal capital structure, following the successive versions of the Modigliani and Miller model. Therefore, this study shows methods of keeping the difference between tax benefits and the costs of bankruptcy and agency costs as large as possible, emphasizing that financing should be adapted to the specific needs of the enterprise. Particular attention was also paid to the indication of the features of selected financial instruments significant from the perspective of the selection of sources of financing for the enterprise and the interpretation of measures that support capital management in an economic entity.

Dilemmas in the choice of financing sources for the enterprise

In corporate finance management, one should follow the principles of: financing, dividends and investments. An investor, for providing capital, whether in the form of equity or debt, expects a benefit in the form of e.g. dividends or interest. If the company is not able to effectively manage the surplus cash, it should return the surplus to the owners. Investments in given assets should be made only when the expected benefits exceed their minimum acceptable level. For a company, the rate of return of investors is the cost of raising capital. Therefore, when choosing the sources of financing the company, it should be noted that the expected rate of return of the owners will be much higher than the cost of borrowed capital, because equity is exposed to investment risk indefinitely.

Taking into account the investment risk, loan capital is a cheaper source of financing. The choice of loan capital should take into account the risk associated with its service, the level of debt and the benefits of the interest tax cover. Debt instruments give the holders predetermined rights to the company's cash flows or assets, rather than rights to interfere with the company's decisions. Therefore, the company's shares are not dispersed. Loan capital is exposed to loss coverage only over a specific period of time and allows you to reap the benefits of the positive leverage effect and tax shield. Thus, an increase in loan capital to the optimal total capital structure increases the company's value.

The entire article can be read in the scientific quarterly Silesian University of Technology: LINK TO THE ARTICLE