Capital Management within the Frames of a Cluster

DOI: 10.5176/2010-4804_3.4.344

Authors: Tsertseil Juliya

Abstract:

TIn the context of international economics globalization and the activity of economic entities being increasingly innovative in nature the methods of managing the capital of the enterprises and organizations implementing their investment projects and solutions become more involved. With the variety of target models of development for an enterprise to effectively implement them it is necessary to estimate the limiting efficiency of capital in use at an enterprise. Marginal efficiency of capital is calculated as the ratio of capital growth increment to the increment of weighted average cost of capital (WACC).

Keywords: the cost of equity, the cost of debt, the weighted average cost of capital