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. Limitation of weighted average cost of the capital?
1) Determine the Weight; the first and foremost difficulty in computing the average cost is to an easy job. This type of the capital structure.
2) Choice of capital structure: the Choice of capital structure is to be used for the determine the average is not an easy job. This type of the capital structure is these current capital structure marginal capital structure or optimum capital structure. Generally current capital structure as the optimum capital structure but is not always correct.
3) Other limitation
a) Average cost of capital cannot be used in the followings way:
i) When the company is trying to bring about radical change in the its debts policy
ii) When the dividend policy of the company is changed
iii) When the growth objective of the company is being changed
iv) When there is a changed in the capital structure involving change in debts equity mix.
b) It is presumed that the cost of raising the funds is in depend to the value funds raised the presumption does not hold good in the practices
c) The specific cost is based on the existing capital structure and these will change when the additional funds have been raised. A firms can not measure its cost directly on additional capital its can only be estimated. if the additional financing capital structure changes the effective rate of capital will also change.
Table 1: Politics Stability of the existing government structure National/provincial government r
Which ratios would a potential long-term bond investor be most interested in? Explain. Potential and Current lenders of long-term funds, like banks and bondholders, are interest
Discounted cash flow analysis is the term employ to describe the technique whereby the value of future cash flows is discounted back to a present value so that the monetary values
how to calculate cashflow statements
I should write assignment on financial management ,but have no idea how to start and how to develop. Please help me
How are financing costs generally incorporated into the capital budgeting analysis process? Financing costs are generally captured in the discount or hurdle rate while doing NPV
Discuss the applicability ofan operating cycle in a poultry business(consider broilers)
What are some of the government requirements imposed on a public corporation that are not imposed on a private, closely held corporation? Public corporations ought to tender au
Q. Relative costs and benefits? Option 1- Factoring Reduction in receivables days = 15 days Reduction in receivables =15/365* £20m = £821916 Option 2 - The
DISCOUNTING TECHNIQUE is also called present value technique. It is the process of calculating the present value of cash flows. Discounting is determining the present value of a
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