Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Basic Assumptions of Cost of Capital
The Cost of Capital is a dynamic concept affected by a multiplicity of economic and firm factors and assumes the following assumptions relating to taxes and risk:
1) Business Risk: It defines the risk of the inability of the firm to cover its operating costs. This cost is assumed to be unchanged that is the firm's acceptance of a given project does not affect its ability to meet operating costs.
2) Financial Risk: It defines the risk of the inability of the firm to cover the required financial obligations (interests, lease payments or preference dividend) is assumed to be unchanged.
3) After Tax Costs: They are considered applicable. The Cost of Capital is calculated on an after tax basis.
4) Capital Structure: The firm's financial structure is assumed to stay fixed.
If dividends paid to common stockholders are not legal obligations of a corporation, is the cost of equity zero? Explain your answer. Even though common stockholders don't have
Question 1: Give the formulae for the Standard Contribution Rate (SCR) and Actuarial Liability (AL) for each of the following funding methods: a) Credit Unit Method b)
Q. Show Inter-Corporate Deposits? Inter-Corporate Deposits: Inter-corporate lending/borrowing or deposits (ICDs) is a popular short-term investment alternative for companies in
Application of Shareholder Value Maximization Framework Factors affecting Shareholder's Value are: Capital Market Conditions Profitability à Includes factors li
Question 1 Explain the concept and phases of capital budgeting Question 2 Define and explain the methods of demand forecasting Question 3 Mention the elements o
What are the advantages and disadvantages of the aggressive working capital financing approach? An belligerent working capital financing approach typically results in a lower c
Name two patterns of cash flows for a share of common stock. How does the market determine the value of the most common cash flow pattern for common stock? Cash flows for a sha
Describe the sales forecasting process. Sales assumptions are a group effort. Marketing and Sales personnel usually provide assessments of demand and the competition. Producti
You are currently employed by DPT Holdings Ltd (DPT) one of the world's largest MNEs based in the United Kingdom. DPT is looking to enter into a new phase of global expansion activ
Routine functions For the efficient execution of the managerial finance functions, routine functions have to be executed. Such decisions concern procedures and systems and incl
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd