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!
Q. Trouble in Determination of Cost of Capital?
Trouble in Determination of Cost of Capital:-
1. Historic Cost as well as Future Cost: - One main problem in the determination of cost of capital arises due to difference of opinion regarding the concept of cost itself. It is dispute that book costs are historic costs as well as the calculation of cost of capital on the basis of such costs is irrelevant for decision making.
2. Problems in calculation of Cost of Equity: - The calculation of cost of equity capital depends upon the rate of return expected by equity shareholders. But it is extremely difficult to assess the expectation of equity shareholders for the reason that there are many factors which influence their expectations.
3. Problems in calculation of cost of retained earnings: - Occasionally it may appear that retained earnings are free of cost because they haven't been raised from outside.
4. Problems in conveying Weights: - Weights have to be assigned to a variety of sources of finance to compute the weighted average cost of capital. The choice of utilizing the book value weights or market value weights places another problem in the calculation of cost of capital.
a) Year 2 Year 1 Stock turnover (350/500) * 365 = 255.5 days (250/450) * 365 = 202.7 days
Relationship between Bond Price and Time (If Interest Rates are Constant) The bond price changes as the bond moves closer to its maturity. If the bond is quoted
limitations of using a periodic inventory system
Q. Management of Working Capital? Working capital, in general practice, refers to the excess of current assets over current liabilities. Management of working capital therefore
the procedures, techniques or strategies that could or should be implemented to reduce the likelihood of harm > actions that could be taken to eliminate the hazard or reduce the r
Taxonomy of financial intermediaries We start by looking at the USA, the largest economy and financial system in the world. Subsequently we will turn to other countries. In the
Bid The price buyers provide to acquire securities or privacy from sellers.
Explain Capital Budgeting and its methods.
SUPERVALU INC . , a large US retail grocer, had $36.1 billion in sales for its fiscal year ended February 25, 2011. SUPERVALU currently reports using US GAAP. The controller of
a. Calculate expected earnings per share (EPS) if the firm is perfectly hedged. EPS $
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd