Open Access
Article
SciPap-780
Deciding the Selection of External Financing With Dynamic Model
by
Irena Honková 1,* 
1 Faculty of Economics and Administration, Institute of Business Economics and Management, University of Pardubice, Studenská 84, Pardubice 53210, Czechia
* Authors to whom correspondence should be addressed.
Abstract: This article deals with the area of financial management. The main goal is to develop a methodology as a set of guidelines and procedures to increase the efficiency of the decision-making process when selecting the external financing instruments. For this purpose, summarized and comprehensive knowledge of the types of external financing, which are inserted into the dynamic model to simulate the changing conditions. Subsequently verified by empirical data, or clarified their validity. The created model facilitates the modelling of changes in time because it is crucial to know what future consequences lies in decisions made the temporary turbulent world. Each variant features possible negative and positive changes of varying extent. The possibility to simulate these changes can illustrate an optimal variant to a financial manager. This decision-making regarding the selection of a external funding instrument is no longer a random process. On the contrary, it is supported by rational considerations.
Keywords: External Financing, Wacc, Decision-Making Model
JEL classification: M21 - Business Economics
SciPap 2015, 23(3), 780
Received: 20 October 2014 / Accepted: 17 December 2015 / Published: 21 December 2015
