Reference no: EM133100340

Question - Cost of Capital - What are the ways capital is raised in an organization? Does the organization rely on various sources of capital, or is funding provided primarily from a single source? What is a "target capital structure" in an organization that guides the way capital is raised? If the organization is complex, are you aware of divisions or subsidiaries with different degrees of risk and different costs of capital? How would you use the financial statements of an organization and focus on long-term or permanent financing, estimate the percentages that are provided by each source, according to book values? If possible, comment on how the organization determines if it is using its long-term funds effectively.