Cost of capital, Finance Basics

Assignment Help:

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.


Related Discussions:- Cost of capital

Commercial banks - banking institutions, Commercial Banks - Banking Institu...

Commercial Banks - Banking Institutions These are financial institutions such accept deposits of money from the universal public, safeguard the deposits and create them availa

Advantages of bonus matter, Advantages of Bonus Matter a) Tax advanta...

Advantages of Bonus Matter a) Tax advantages         Shareholders can sell new shares, and create cash in form of capital gains such is tax exempt unlike cash dividends wh

Materials management - supply chain management, Materials Management - Supp...

Materials Management - Supply Chain Management Materials management was once a task undertaken without the assistance of computers. Today it is unthinkable as the speed of cal

Dividend cover ratio, Dividend Cover Ratio Dividend cover = EPS/ DPS =...

Dividend Cover Ratio Dividend cover = EPS/ DPS = Earning to ordinary shares/Dividend paid       This signifies the number of times dividend can be paid from earnin

Explain trade liberalisation, Problem 1 a) Explain Trade Liberalisatio...

Problem 1 a) Explain Trade Liberalisation and give your views whether emerging economies should adopt trade liberalization protectionist measures to attain economic growth.

What is the objectives of listing, What is the Objectives of Listing ...

What is the Objectives of Listing Objectives of listing are mainly to: (i) Provide liquidity to securities. (ii) Mobilize savings for economic growth. (iii) Protect

Comparison between debt finance and ordinary share capital, Comparison betw...

Comparison between Debt Finance and Ordinary Share Capital Differences between Debt Finance and Ordinary Share Capital as Equity Finance as   Ordina

Objective to transfers of financial assets, Access the relevant authoritati...

Access the relevant authoritative literature on accounting for the transfer of financial assets. What conditions must be met for a transfer of receivables to be accounted for as a

Determine the dol for firm, XYZ Ltd. has an average selling price of Rs.10 ...

XYZ Ltd. has an average selling price of Rs.10 per unit. Its variable cost are Rs.7 , and fixed cost amount to Rs.170000. it finances all its assets by equity funds. It pays 35% ta

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd