Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Determine The key factor affecting financing Costs
Because cost of capital is measured under the assumption that both firm's asset structure and its capital (financial) structure are fixed, the only factor which affects various specific costs of financing is the supply and demand forces operating in the market for long-term funds. Or we can say that as a firm raises long-term funds at different points in time, the only factor affecting their cost is riskless cost of the particular type of financing. Regardless of the kind of financing used, the below relationship should prevail:
kj = rj + b + f
Where
kj = the specific cost of the various types of long-term financing,
rj = the riskless cost of the given type of financing, j
b = the business risk premium
f = the financial risk premium
Equation indicates that cost of each specific type of capital depends on riskless cost of that type of funds, business risk of the firm and financial risk of the firm.
To compute the total returns we need the investment horizon, reinvestment rate and the price of the bond at the end of the investment horizon. Steps involved in computi
Explain the risk-return relationship. The relationship among risk and required rate of return is known as the risk-return relationship. It is a positive relationship for the r
The purpose of this financial analysis is to determine the economic viability during the last five years of the Lance Company and to advise our client on whether the acquisition of
a-ii, should i calculate the co-variance of the 30 securities?
Laspeyres Method Laspeyres method uses the quantities consumed during the base period in computing the index number. This method is also the most commonly used method which inc
Define the term- Cost of capital Cost of capital is the rate of return a firm should earn on its investments for the market value of the firm to remain unchanged. Acceptance of
Trading Mechanism Of Future: Flow of the Order Any person who wants to trade in futures has to contact a Futures Commission Merchant (FCM) or a broker. First, let us look
Explain Exchange Rate Risk Exchange-rate risk denotes to the risk the swap bank faces from fluctuating exchange rates throughout the time it takes the bank to lay off a swap it
What is the monthly interest rate if the lease payments are $24,000 per month for 24 months. The total value is $420,000
The main drawback of the tradition approach of valuation is that it discounts every cash flow using the same discount rate. For example, let us take 5-year (7.00 per ce
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd