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q explain marginal cost of capitalthe calculation of cost of capital focused when the firms total financing and its paten of financing is given and
q limitation of weighted average cost of the capital1determine the weight the first and foremost difficulty in computing the average cost is to an
advantage of weighted average cost of capital 1straight forward and logical weighted average ost of capital defines the oveall cost of capital as the
q weighted average cost of capitalwhen the company capital structure is made from equity share capital debenture and preference share capital then
q computation of the cost of capitalcomputation of overall cost of capital of the firm invoicescost of debts debt may be issued at par at premium or
q how amount of financing affecting cost of capitalamount of financing as the financing require of the firm become larger the weighted cost of
q firms operation and financing decisionfirms operation and financing decision risks or the variability of returns also results for the decision make
q market condition affecting cost of capitalmarket condition if an investor is purchasing a security where the risk of the investment in significant
factors affecting cost of capital are elements in the business environment that cause a company cost of capital to be high and low figure below
q problems in assigning weightsproblems in assigning weights for determining the weighted average costs of capital weight has to assign to the
q problem in computation of retained earnings problem in computation of retained earnings it is sometimes argued that retained earning do not involve
q problems in computations of cost of retaining earningproblems in computations of cost of retaining earning it is sometimes argued that retained
q describe historical cost and future costshistorical cost and future costs another problem in the determine of cost of the capital arise on the
q problem in the determine of cost of the capitalconceptual controversies regarding the relationship between the cost of the capital and the capital
q define implicit cost and explicit costsimplicit cost and explicit costs the implicit cost is the rate of return associated with the best invests
q what do you mean by average cost and marginal costaverage cost and marginal cost the average cost is the combined cost as explain above but for the
1future cost and historical cost financial decision is based on the future cost and not on the historical cost the decision related to the future and
q importance of the cost of capital1 evaluating financial performance the actual profitability of the project is compared to the projected overall
q cost of capitalthe terms of cost of capital refers to the minimum rate of the return a firm must earn on its investment so that the market value of
q explain about money market mutual fundsmoney market mutual funds money market mutual funds mmmfs focus on short-term marketable securities such as
q show inter-corporate depositsinter-corporate deposits inter-corporate lendingborrowing or deposits icds is a popular short-term investment
q show certificates of depositscertificates of deposits certificate of deposits is papers issued by banks acknowledging fixed deposits for a
q what is commercial paperscommercial papers commercial papers cps are short-term unsecured securities issued by highly creditworthy large companies
q what do you mean by treasury billstreasury bills tbs are short-term government securities the usual practice in india is to sell treasury bills at
q basic objectives of cash managementthe basic objectives of cash management are two-fold1 to meet the cash disbursement needs payment schedule and 2