AGRO-INDUSTRIAL COMPANIES’ CAPITAL COST AND STRUCTURE

Анотація

The article presents a study on the assessment of the structure and cost of capital of enterprises in the agrarian sector of the Ukrainian economy. It was found that the problem of optimising the capital structure in order to minimise its cost and ensure financial stability and competitiveness is one of the important issues in which a significant number of stakeholders are interested for enterprises of the agricultural sector, which is one of the key sectors of the national economy. The research was conducted using the following methods: the method of economic and statistical analysis and synthesis (for collecting and processing aggregated information on the capital structure of agro-industrial enterprises, calculating the cost of capital and its elements); the method of graphics and scientific comparisons (for visualising the analysis conducted and identifying trends in dynamics); the method of theoretical generalisation (for substantiating the results of the research conducted and formulating conclusions and proposals for further research). The dynamics of investment in enterprises of the agricultural sector of the economy were studied and the dependence between the increase of investment in the agricultural sector and the growth of the positive difference of the return on capital of enterprises of the agricultural sector compared to the total return on capital of the economy as a whole was revealed. It was found that the expected cost of equity capital is significantly higher than the expected cost of debt capital, with the country risk premium accounting for a large part of the difference. The heterogeneity of changes in the capital structure of the companies studied as a result of changes in the indicator of the expected rate of the cost of equity capital was revealed, which is related to the presence of a consistently cheaper alternative in the form of loan financing and the strategic vision of a particular company to ensure its own financial stability. It is suggested that in establishing cost guidelines for optimising the capital structure and minimising its cost, in addition to changes in the components of the cost of capital, the impact of such changes on the financial stability and solvency of the company should also be taken into account, as a basis for further research in this direction.

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