The Research of Investment Policy and Investment channel of the erterprise

Financing, a successive function of financial management, is not only the precondition for the establishment of an enterprise, but also the basic for its development. The contents of financing are rather complicated, to which much attention must be paid by any enterprise. Financing is a starting point of its financial activities and the options of financing approaches are the focus of these activities. The enterprises must pay some expense to get capital,which constitute capital cost. High-priced capital cost will increase the enterprises' financing cost. Thus the primary issue is capital cost during the course of capital-raising, next capital structure should be taken into account. Different financing methods directly determine costs of various funds. They combine to determine the financial structure and the weighted average cost of capital (WACC). The enterprises should plan proportion of the borrow long-term capital and self-possessing capital and make the general cost lowest and make the enterprises'general value biggest, which will become the primary issue that the enterprise should face in modern economic circumstance. Whether an appropriate and less costing financing method can be fund is the key to financing work.