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Q. What do you mean by Average Cost and Marginal cost?
Average Cost and Marginal cost: the average cost is the combined cost as explain above, but for the difference in the form of expression. The combined cost may be expressed as the total cost of all source of the capital and the average cost as the percentage of total composite cost of the total funds employed. It is thus the weighted average of the cost of the each component of funds employed by the firm. The weights are the proportion of the share of each component of funds by the employee. The marginal cost of capital is that average cost which is concerned with the additional funds raised by the funds. While taking capital budgeting and financing decision for an existing concern. It is the marginal cost of capital which the forms based and not the average costs.
Credit Markets: The financial system enables supply of funds to support purchase of goods and services and to finance capital investments. In this way, it provides funds both t
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A mortgage may be defined as a pledge of property to secure a debt payment; in this context, we will use the term property to mean real estate. If the
discuss the applicability of operating cycle in poultry (consider broilers)
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Cash flow from investing activities The items included in this heading are: Cash payments Cash receipts Acquiring proper
Question: a. Explain what the debt overhang problem is (following the lines of Myers 1977) make sure that you specify what the relevant conflict of interest is and what are the
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