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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 retained earnings is cost free. As we will discuss in subsequent paragraphs, retained earnings do cost the firm. Cost of retained earnings is the opportunity cost of earning on investment elsewhere or in company itself. Opportunity cost is technically called as implicit cost of capital. It is the rate of return on other investments available to firm or shareholders in addition to that currently being considered.
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Define operating cycle and long and short operating cycle? Use of operating cycle? Can someone give me assistance on these questions??
Q Operating economics A number of operating economies will be available with the merger of two or more companies. Duplicating facilities in accounting purchasing marketing etc
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#queThe opening balance of one of the 31-day billing cycles for Lorenzo''s credit card was $4100, but after 15 days Lorenzo made a payment of $2300 to decrease his balance, and it
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