Investment decision and cost of capital, Financial Management

Assignment Help:

INVESTMENT DECISION AND COST OF CAPITAL

In Finance, investment decision is disclose the allocation of funds in fixed assets or long term. This decision is also known as capital expenditure decision / capital budgeting decision.  These decisions associated to the profitability of the business. Financial management is associated to procurement of funds at cheaper cost and allocating them to projects at higher rate of return. The borrowing or procuring function is associated to the calculation of the cost of every kind of source of funds in addition to the overall cost of all sorts of funds borrowed or to be borrowed by a business.  The guiding standard in both these decisions is that - the overall cost of capital must be the lowest and the return on the various investments must be the highest at any specified period.  These two decisions will decide the financial health of an organization.


Related Discussions:- Investment decision and cost of capital

Capital Asset Pricing Model , What is Capital Asset Pricing Model? Please ...

What is Capital Asset Pricing Model? Please provide me report on Capital Asset Pricing Model. It is about 2000 words count report on topic Capital Asset Pricing Model.

Differance between forward start option and a package, 1 Explain the differ...

1 Explain the difference between a forward start option and a package. Outperformance certificates are offered to investors by many European banks as a way of investing in a com

Cash management - managing excess cash, Cash management is about managing ...

Cash management is about managing excess cash also. The response of management must depend on whether the surplus is large and how long it is likely to exist. If the balance is

Global sector indixes, Global Sector Indixes Morgan Stanley Capital Int...

Global Sector Indixes Morgan Stanley Capital International (MSCI) measures the International and National performance. It launched All Country Sectors on January 30, 2001. MSCI

International mortgage backed securities, International mortgage-back...

International mortgage-backed securities are the mortgage-backed securities that are issued in a country by a non-domestic entity. With limited size of the Indian

Approaches to financial management, mention the advantages and disadvantage...

mention the advantages and disadvantages of the traditional approach

Describe the term- investment decision, Describe the term- Investment Decis...

Describe the term- Investment Decision Investment decision, also referred to as the capitalbudgeting decision, simply means decisions to acquire assets or to invest in aproj

Types of rating - debt rating, Based on the period involved in repaym...

Based on the period involved in repayment of the debt obligations, the debt instruments could be classified into long-/medium-/short-term debt instruments.

Financial analysis, Task I am sure you are aware that the corporate annua...

Task I am sure you are aware that the corporate annual meeting is coming up soon. As part of the Treasurer''s presentation, I have been asked to propose a Special Capital Require

#title.case let., this case has been framed in order to test the skills

this case has been framed in order to test the skills

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