Optimal sources of finance for a corporate sector

Ing. Lusine Gevorgyan

Master's thesis

Abstract:

The thesis aims to identify the optimal choices of capital structure for corporate firms, which are in the stage of growth. Firstly, there are mentioned the factors influencing on the companies’ investing, financing and dividend decisions. For achieving the goal of the research, the main assumptions and models of different capital structure theories were studied. To conduct the analysis, Tesla Inc. has been chosen as a former start-up company, currently being in its growth stage. The study includes financial analysis of Tesla for 2009-2016 years. In this paper the capital structure of companies with similar risk have been applied to Tesla. In the next step, for a more thorough analysis, the Modigliani-Miller theory’s Proposition II has been applied to Tesla and the results of firm value and equity value have been compared with the results of other capital structures.

Keywords

Capital structure, financing decisions, capital structure theories, Modigliani-Miller theory, trade-off theory, pecking order theory, equity financing, debt financing

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 12. 5. 2017

Obhajoba závěrečné práce

• Obhajoba proběhla 19. 6. 2017
• Vedúci: Ing. Dagmar Linnertová, Ph.D.
• Oponent: Ing. Luděk Benada, Ph.D.

Masaryk University

Faculty of Economics and Administration

Master programme / odbor:
Finance and Accounting / Finance (eng.)