Abstract:Nowadays,in this era with the rapid development of information technology and the Internet all over the world,as the foundation and quite important part of the enterprise cost management,the cost of capital is becoming more favor and attention by enterprises.With the opening-door lever rising ceaselessly in China plus the continuous influx of foreign enterprises,which brings more and better opportunities to the development of enterprises,also brings more challenge at the same time in the management of the captical cost.
Based on the enterprise management of the capital cost theory as the foundation, taking the PAT Control Technology company of limited liability in Xuzhou as the research object, this paper adopts the empirical analysis method and so on to analyse the present situation of management of the capital cost in it. From the enterprises, banks and other financial institutions and the government three aspects, based on the problems discovered, this paper puts forward the optimization measures to solve the management of the capital cost problems. This paper argues that in order to effectively reduce the cost of capital of enterprises,the most important thing in the enterprise is to learn how to use the management of the capital cost method, how to use financial leverage ,and how to choose the best capital structure to balance the relationship between the financial revenue and the financial risk.
Keywords Cost of capital Capital structure Financial leverage