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

Inflated budgeted expense account, Write down what processes and data you w...

Write down what processes and data you would analyse when looking at the following scenarios and write down any improvements you could include to ensure that the problem would be l

Determine the concept of measuring the rate of return, Determine the concep...

Determine the concept of Measuring the Rate of Return The rate of return is total return the investor receives during holding period (the period when security is owned or held

Discuss about stock market and stock exchanges , Successful managers and in...

Successful managers and investors understand the various financial markets and the investments these markets offer. A good understanding of potential gains and losses, as well as t

Institutional clearing member, Institutional Clearing Member (ICM) A Fi...

Institutional Clearing Member (ICM) A Financial Institution has to subscribe to at least 100 equity shares of Rs.10,000 each to become an Institutional Clearing Member of COFEI

Money market instruments, Just as any other financial market, money m...

Just as any other financial market, money market also involves transfer of funds in exchange for financial assets. Because of the nature of the money market, the

Explain the major types of audit plans, Explain the major types of audit pl...

Explain the major types of audit plans Three major types of audit plans Strategic -this the long term forward looking audit, it continually gets updated and identifies are

Financial systems, Financial Systems: The overall financial management ...

Financial Systems: The overall financial management framework will include a number of elements such as: Financial systems designed to capture the details of each financ

Show the compound value of the single flow, Q. Show the Compound Value of t...

Q. Show the Compound Value of the Single Flow ? Compound Value of the Single Flow (Lump Sum):- The process of computing future value becomes very cumbersome if they have to be

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