For capital budgeting decision which cost is relevant, Financial Management

For capital budgeting decision which cost is relevant

For capital budgeting decision, composite cost of capital is comparatively more relevant albeit the firm may finance one proposal with only one source of funds and another proposal with another source. This is for the fact that it's the overall mix of financing over time that is materially significant in valuing firm as an ongoing overall entity.

 

Posted Date: 9/4/2013 5:40:36 AM | Location : United States







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