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!
Q. Calculation of Cost of Capital?
Calculation of Cost of Capital: - Calculation of cost of capital includes:
(A) Calculation of cost of specific sources of finance
(B) Calculation of weighted average cost of capital
Calculation of Cost of Specific Sources of Finance: - It comprises:
(1) Cost of Debt: - A company may perhaps increase the debt in a number of ways. It may perhaps borrow funds from the financial institutions or else public either in the form of public deposits or debentures for a specific period of time at a specified rate of interest. A debenture or bond perhaps issued at par at a discount or at a premium.
Debt may either be irredeemable or else redeemable after a certain period.
(i) Cost of Irredeemable Debt:-
Kdb = (I / NP )X 100
Kdb = Cost of debt before tax
I = Annual Interest Charges
NP = Net Proceeds from the issue of Debt
Multi-period Compounding or else Future Value :- If the company determination compounding interest half-yearly (semi-annually) instead of annually then investors will gain as he wi
Home Inc. is considering buying a new piece of equipment, which will cost $715,000 and has an economic life of 5 years, in order to produce a new line of product. The company beli
Karl Robinson is about to make his first major decision as president and chief executive officer of Conway Control & Instrument Corporation, a manufacturer of electronic test instr
It is also important to compare the returns from the equity stock and the bond to determine the profitability of both investments. We have seen above that the div
Zero base budgets: this is a new technique, which was first used by the US Department of Agriculture in 1961. Texas instruments, an MNC, have used it in the private sector. But,
Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.
Working of SEC The SEC supervises the main members in the securities world, including securities brokers and dealers, securities exchanges, investment advisors, and mutual fund
The US Pension Fund System The US corporate pension system has matured along with the country's demographic cycle. It consists of both defined benefit plans and defined contrib
Define the Explicit cost of capital Explicit cost of retained earnings that involve no future flows to or from firm is minus 100 per cent. This must not tempt one to infer that
Every business concern should have neigh adequate capital to run the business operations it should have neither redundant nor excess working capital non inadequate or Shortage of
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd