Cost of Construction Enterprises' Capital in the Context of Economic Development

DOI

10.2991/emt-19.2019.34How to use a DOI?

Keywords

WACC, Construction, Labilities' costs, Development of the economy

Abstract

Each enterprise has sources of asset financing. Sources may be own or alien. Both categories of labilities bear some costs. In the case of foreign sources, the cost is mainly the interest for which we borrow. Costs in the case of own resources represent alternative lost profits. The amount of capital costs and their structure affect the amount of real economic profit. The article analyzes the cost of labilities for construction enterprises in the context of the development of the Czech economy and further analyzes the performance of these enterprises compared to other sectors. The data for the analysis will be based on the statistical survey of the Czech Statistical Office in the years 2011 to 2018. An analysis of the construction sector has been carried out showing that the cost of capital is slightly higher than the average of the rest of the industry. However, the sector performance is significantly lower.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Vojtech Stehel
AU  - Radimír Novotný
PY  - 2019/05
DA  - 2019/05
TI  - Cost of Construction Enterprises' Capital in the Context of Economic Development
BT  - Proceedings of the International Conference on Economics, Management and Technology in Enterprises 2019 (EMT 2019)
PB  - Atlantis Press
SP  - 183
EP  - 187
SN  - 2352-5428
UR  - https://doi.org/10.2991/emt-19.2019.34
DO  - 10.2991/emt-19.2019.34
ID  - Stehel2019/05
ER  -