Cost of capital, Finance Basics

Cost of capital:

The cost of capital is a term related to the field of financial investment to refer to the cost of a company's funds (both equity and debt), from an investor's point of view "the shareholder's needed return on a portfolio company's existing securities". It is used to calculated new projects of a company as it is the minimum return that investors expect for giving capital to the company, therefore setting a benchmark that a new project has to meet.

Posted Date: 2/13/2013 4:36:04 AM | Location : United States







Related Discussions:- Cost of capital, Assignment Help, Ask Question on Cost of capital, Get Answer, Expert's Help, Cost of capital Discussions

Write discussion on Cost of capital
Your posts are moderated
Related Questions
system integration and infrastructure development is the

how to do basic accountancy and what can i claim back

Assume a levered firm has a current value of $650,000,000. The firm currently has $259,258,527.20 in debt. Without debt, firm value (i.e. VU) would be $580,000,000. Ignore the cost

I need to understand a practice question for exam, but I only have a partial solution. I need a more detailed solution, so can understand how to arrive at the answer. The problem

Stock Exchange Index or SEI Stock Exchange Index is a measure of relative changes in prices of stocks from one duration to another index. Nairobi Stock Exchange twenty (20) -

From the above case shareholders are very worried that apple is having too much cash,discuss six reasons why shareholders are so worried

Define and explain the credit multplier

Instructions: Read the Herzberg findings related to extrinsic and intrinsic factors driving job satisfaction, dissatisfaction and motivation. To what extent should employers feel r

Explain the both Dividend Yield and Earnings Yield Dividend Yield: Dividend yield is the ratio of per share expected dividends, to current market price of share. Earnin

Determine the amount you would be willing to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate