۱٫ Introduction

۲٫ Financial decision using genetic algorithms method

۳٫ Case study

۴٫ Conclusions

References

At the level of an economic entity, a manager is confronted with three main categories of decisions: investment decisions, financing decisions and profit allocation decisions. The first category of decisions is closely tied to financing decisions. Financing decisions do not just represent allocation of capital, but it is also a useful activity in a certain segment of the market, using material resources and hiring human resources in order to obtain superior results. Financing decisions have an important impact over the impact of liabilities, modifying their chargeability degree and the average cost of capital. Financing decision aim for the selection of optimal sources of financing for enterprising and establishing the most adequate ratio between internal sources resulting from self-financing and from divestment of fixed and current assets, on one hand, and external sources that attract capital from outside enterprise on the other hand. The criteria on which the financial structure of the enterprise is established is based on achieving the lowest cost of the capital in the conditions of a reasonable and controllable level of debt of the company. A constant preoccupation of companies is finding financing sources for their activity with the lowest possible costs, which means minimal guarantees and easy access to them.

Introduction

On a perfect market, the financial decision or self-financing would have no implication on the value of the company and on its investment projects. But the operation of the economic activity is far from the perfect model of the market and that is why there is asymmetry of tax treatment, of information and that is why the financial decision has a major impact on the value of the company, and the purpose of any economic activity is the maximization of its value. The selection of the financing sources for investments is complex because besides the main criteria concerning the costs of achieving the capital, there are a series of restrictions concerning the access on the capital market, the difficult legislation, the decision of the authorized institutions in approving the usage of these types of financing sources, the financial situation of the company. For example, only a small amount of companies have access to debenture loan, namely the ones that provide sufficient guarantee for such a commitment, additionally such a type of loan it is very complicated from the formalities stand point of view.