How to calculate the financing expense ratio and the formula for calculating the financing expense p

Funding cost rate = Funding cost Total amount raised.

Financing costs. Financing costs refer to the expenses paid by enterprises (private non-profit organizations) to obtain capital in capital raising activities. It is usually paid in full at the time of fundraising and does not occur again in the process of using capital after it has been acquired. Therefore, it is a fixed cost of capital.

It is a financial expense.

Funding Costs Total amount raised.

kc=dc/pc(1-f)+g；Where: KC - common stock.

cost of capital ratio; DC - Dividends on the total amount of common stock issued in the first year.

PC - the total amount of old shares of common stock; f--Financing rates

**The amount of funds raised should be the amount of fund-raising funds, the amount of the company's fund-raising funds is determined according to the use of the fund-raising funds, such as the development of new products, investment in fixed asset projects, joint ventures or cooperative operations, capital increase to other enterprises or the acquisition of shares of other enterprises, etc., which need to be evaluated according to the above purposes to determine the amount of fund-raising funds. This is because after the required funds have been raised, the current use of the funds raised and the progress of the project need to be disclosed at a specified time.

If the company adopts the fixed dividend growth policy, the capital cost of common shares can be calculated according to the following formula:

The cost of capital of common shares = expected dividend in the first year [amount of common shares raised * (1 - common shares)] * 100% + fixed dividend growth rate.

In this question, the cost of capital for issuing ordinary shares = 2250*15% [

Financing costs include borrowing interest, bond interest, bond issuance costs, exchange losses, and so on.

Financing modes refer to the specific forms of financing that can be used by enterprises to raise funds. Chinese enterprises mainly have the following financing methods: absorbing direct investment; Issuance**; utilization of retained earnings; borrowing money from banks; utilization of business credit; issuance of corporate bonds; financial leasing; Leveraged buyouts.

Among them, the funds raised in the first three ways are equity funds, and the funds raised in the latter ways are debt funds.

A particular type of financing may only be available for a particular source of financing, but funds from the same source can often be obtained in different ways, and the same type of financing is often available for different sources. Therefore, when raising funds, enterprises should achieve a reasonable coordination between the two.

Borrowing: Enterprises can borrow from banks and non-financial institutions to meet the needs of mergers and acquisitions. This method is simple, and the company can obtain the required funds in a short period of time, and the confidentiality is also very good.

However, enterprises need to bear fixed interest, and must repay the principal and interest when due, and if the enterprise cannot reasonably arrange the loan repayment funds, it will cause the deterioration of the company's financial situation.

Issuance of bonds: Bonds enable the company to raise capital, and the issuance of bonds in accordance with legal procedures does not bear the obligation to pay a certain amount of interest and repay the principal within a specified period of time. This method has a lot in common with borrowing, but bond financing is more extensive, and there is more room for raising funds.

Common Equity Financing: Common equity is the most basic and dominant share in the capital structure of a joint-stock company. Common shares do not require principal repayment, and dividends do not need to be paid in fixed amounts on a regular basis like borrowings and bonds, so the risk is low.

However, raising funds in this way would lead to the dispersion of control of the original shareholders.

The total amount of funds raised refers to the total amount of external financing that the company receives for its operations and development. In corporate financing, the total amount of financing is a very important indicator, which covers a variety of financing methods and **, such as the issuance of new shares, the issuance of bonds, bank loans, private equity, financial leasing, etc.

The total amount of funding needs to be calculated from a variety of perspectives. From an accounting point of view, the total amount of funds raised by the company from the outside over a certain period of time refers to the total amount of funds raised by the company from the outside. This includes all funds related to fundraising, such as bonds, bank loans, subsidies, operating income, etc., issued by the company.

For startups, the total amount raised can also include non-traditional funding methods such as private equity and angel investment.

From a financial point of view, the total amount of funds raised is mainly used to measure the capital structure of a company, which is an important indicator of corporate financing and financial structure management. The larger the total amount of financing, the higher the risk of corporate debt, but the more sufficient capital reserves, the greater the space for enterprise development, therefore, enterprises need to reasonably plan the total amount of financing according to their own situation, and balance the interests of capital and debt.

At the same time, the total amount of financing can also be used as the basic data for the formulation of corporate financing plans, and vertical chain enterprises can choose the financing methods and programs suitable for their own enterprises according to their own financing needs and total financing. For example, for enterprises with large capital needs but low credit ratings, they can choose to issue bonds for financing; For enterprises with good operating performance, they can obtain more flexible capital flow through the issuance of new shares.

In short, the total amount of funds raised is one of the core concepts of enterprises in the financing process. Reasonable planning of the total amount of financing can not only ensure that the surplus business of the enterprise can obtain sufficient financial support, but also improve the financial management level and sensitivity of the enterprise to the financing market. <>

In the conditions of the modern commodity economy, no matter what channel and method of raising funds are used, enterprises must pay a certain price. The cost of capital is the occupancy fee and financing fee paid by the enterprise to obtain and use the capital. The capital occupation fee includes loan interest, ** interest and bond interest.

They are generally related to the size of the amount of funds raised and the length of the period of use of funds, and often have the characteristics of regular and regular payments, thus constituting the main content of capital costs. Financing fees are the various expenses spent by enterprises in the process of raising funds, such as bank borrowing fees, ** and bond issuance fees, registration fees and printing fees. They are generally related to the number of times funded, but not directly related to the size of the funds raised or the length of the life of the funds, and are usually paid in a lump sum at the time of fundraising.

Due to the different total amount of funds raised under different conditions, in order to facilitate analysis and comparison, it is usually expressed as a relative number, that is, the cost of capital rate, which is calculated as follows: Cost of capital rate 2 capital occupation fee (total amount of financing - financing cost) x 100% (l) Cost of capital rate = (capital occupation fee + financing cost) Total amount of financing x 100% (2) This paper argues that the cost of capital ratio expressed by these two formulas is inadequate, which is mainly manifested in the following aspects: 1

Equation (1) does not conform to the basic meaning of capital cost As mentioned above, capital cost is the various expenses paid by an enterprise in order to obtain and use funds, which should include two parts: capital occupation fee and capital financing fee