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. Explain Marginal cost of capital?
The calculation of cost of capital focused when the firms total financing and its paten of financing is given and remains constant. However in practice the investment proposal may require funds to be raised from new internal external sources and thus, increasing the total funds also.
The cost of capital of the additional funds is called the marginal cost of capital. If the additional financing uses more than one source, say a combination of debt and preference share capital, then the WACC of the new financing is called the Weighted Marginal Cost of Capital (WMCC).
The WMCC for any firm depends upon several factors and therefore the calculation of WMCC is a typical exercise. The following variables may affect the marginal cost of capital of a specific source and thereby may affect the WMCC as follows:
1) The investors may perceive an increase in business risk of the firm.
2) The financial risk of the firm may also change as a result of change in composition of the capital structure.
3) The increase in business and financial risk may increase the marginal cost of capital.
Cash Flow Valuation Technique The aim of this research is to empirically enquire into how to value a company using discounted cash flow valuation technique within its real lif
Step by step approach to completing a statement of cash flows Step by step approach to completing a statement of cash flows Step 1
What is Cost of Equity Capital? Describe please.
Explain the flow of goods and paper work in Diagram on Page 74 Ed. 10 [P. 70 in Ed. 9] of your textbook. Explain a. how the transaction would work without a Letter of Credi
What are the options available for growth Joint venture A joint venture is when a separate company is formed, in which every member holds an equity st
What is Public Finance Central, state as well as local governments handle large sums ofmoney, which are received from several sources and should be utilized in accordancewith
A drug company has developed a new painkiller for chronic pains, although it is doubtful whether the new drug actually has any effect. The company conducts a double-blind experimen
Mr. Moore will be 35 years at the end of the month and he wishes to retire in 25 years. He plans to invest in a mutual fund earning 7.5 percent annual return compounded monthly an
Working of ASIC ASIC as an independent government body enforces and regulates company and financial services laws to protect consumers, investors and creditors. It keeps the pu
Identify and explain the key stages in the capital investment decision-making process and the role of investment appraisal in this process.
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