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Q. What do you mean by Average Cost and Marginal cost?
Average Cost and Marginal cost: the average cost is the combined cost as explain above, but for the difference in the form of expression. The combined cost may be expressed as the total cost of all source of the capital and the average cost as the percentage of total composite cost of the total funds employed. It is thus the weighted average of the cost of the each component of funds employed by the firm. The weights are the proportion of the share of each component of funds by the employee. The marginal cost of capital is that average cost which is concerned with the additional funds raised by the funds. While taking capital budgeting and financing decision for an existing concern. It is the marginal cost of capital which the forms based and not the average costs.
How does accounts receivable factoring work? What are the benefits to the two parties involved? What are the risks? Factoring is while one firm sells accounts receivable that i
Additional Paid in Capital - Amounts paid for stock in excess of its PAR VALUE or STATEDVALUE. Furthermore, other amounts paid by stockholders and charged to EQUITY ACCOUNTS other
School of Business BUACC1521 Personal Financial Planning ASSIGNMENT 1. General information As detailed in the Course Description, the assignment constitutes 30% of the tota
The Role of Merchant Banker The issuer appoints the Merchant Banker (or Investment Banker) to undertake the issue activity. A Merchant Banker performs multiple functions during
Q. Credit Analysis for Formulation of Optimum Credit Policy? Credit Analysis: - Credit Analysis is made to estimate the credit worthiness of the customers before making credi
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
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The price volatility properties of bonds with the help of the graph of the price/yield relationship. Let us now, with the help of a graph, illustrate how duration estim
For this assessment, you are required to choose one workplace hazard or risk to safety in the financial services industry that interests you. Prepare a report on the area you have
What are the primary variables being balanced in the EOQ inventory model? Explain The primary variables mortal balanced in the EOQ model are ordering costs and carrying costs.
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