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.
evaluate the importance of leverage in financial management of a small scale company
Which method should we use to valuate young companies with high growth but uncertain futures? Two examples were Boston Chicken and Telepizza when they began. The great majo
Q. Explain Systematic Risks in Financial management? Systematic risk in non-diversifiable and is associated with the securities Market as well as economic, sociological, politi
nd held it until it matured, what annual rate of return would she have earned? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16
Q. What do you mean by Accrued Expenses? Accrued expenses are the expenses which have been incurred but not yet due and hence not yet paid also. These simply represent a liabil
How to Industry analysis and finally stock picking from Buy-side perspective
AGENCY THEORY An agency relationship may be defined as a contract under which one or more people (the principals) hire another person (the agent) to perform some services on th
Define the gropus of Profit maximisation criterion Profit maximisation criterion has, though, been questioned and criticized on several grounds. Reasons for the opposition in
ESTIMATING WORKING CAPITAL REQUIREMENTS To facilitate, estimate the extent of working capital requirement of a firm, various factors are to be considered. There are various me
30
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