Bauing Construction Holding Group Co.,Ltd. Financing Program

A reasonable capital structure is not only benefit for financing the company successfully but also bringing about a leverage effect for the business operation.Therefore,using debt rationally and equity financing,and rationally arranging the company's capital structure have become a core issue for enterprises in their scientific financing program.In view of the current macro-economic environment and the characteristics of enterprises are main aspects when enterprises in order to have a healthy development in the capital market,how to conduct financing operations to reduce financing costs and risks.This thesis summarizes the results of domestic and overseas research relating to financing,and explains the concepts and theories about financing.First of all,it analyzes the financing status of Bauying Group and concludes that the financing instrument of Bauing Group is not diversified,especially focusing on internal financing and debt financing,and lacking distinct financing program.In order to solve the problem,the percentage of sales method is used to forecast the short-term and long-term capital demand of Bauing Group and a reasonable financing structure which minimize the cost and maximize the benefit combining is formulated in accordance with the actual situation of Bauing Group afterwards.In this thesis,five schemes are proposed in terms of diversification of financing instruments,lowest financing risk,lowest financing cost,and highest financing feasibility.An optimal solution is obtained after the comparison,of which the weighted average cost of capital is lower than the weighted average cost of capital of the financing portfolio in 2016 and various indicators of solvency tend to be stable.According to the Bauing's aim of development,the thesis also designs medium-term and long-term financing proposals,and relevant safeguard measures have been formulated to ensure the smooth implementation of the financing plan.This thesis is looking forward to guiding corporate financing with capital structure theory through the discussion of the formulation and selection of corporate financing strategies for future reference of similar issues.At the same time,the company can adjust the financing scheme to the changing environment during the process of implementation.