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Q. How will you conclude the cost of capital from different sources?
Ans. Implication of Cost of Capital: - Cost of capital of a firm is the least rate of return expected by its investors. The capital utilized by a firm may be in the form of preference shares, equity shares, debts and retained earnings. The price of capital is the weighted average cost of these sources of finance used by the firms. The perception of cost of capital occupies a very important role in financial management for the reason that the investment decisions are based on it.
Compare diversifiable and nondiversifiable risk. Which do you think is more important to financial managers in business firms? Diversifiable risk is able to be dealt with by of
comparative analysis on these two food retailing giants
Managerial Finance Functions Need skilful planning, control and execution of the financial activities. There are four significant managerial finance functions. These are as sho
What is accumulated depreciation? Depreciation is the allocation of an initial cost over time of asset. Whereas the term accumulated depreciation is the total of all the deprec
Q. Cost of Redeemable Preference Share Capital? Cost of Redeemable Preference Share Capital: - Redeemable preference capital has to be returned to the preference shareholders s
fimnancial accounting system
capital structure
Accounts receivable are sometimes not collected.Why do companies extend trade credit when they could insist on cash for all sales? Extending trade credit almost for all the tim
To value an option-free bond, we must determine the on-the-run yield curve for the particular issuer whose bond we have to value. This on-the-run yield curve used
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