What is marginal cost of capital, Financial Management

Assignment Help:

What is Marginal cost of capital

Marginal cost of capital, by contrast refers to incrementalcost associated with new funds raised by firm.

Marginal cost is the specific concept used tocomprise extra cost of raising new funds. In financial decisions marginal costconcept is most vital.

 


Related Discussions:- What is marginal cost of capital

Impact of the yield level in bonds, Different bonds trade at differen...

Different bonds trade at different yields though the coupon rate, maturity, and embedded options are same for them. Assuming that all the other bond characteristi

Factors affecting choice of a minimum cash balance amount, Explain the fact...

Explain the factors affecting the choice of a minimum cash balance amount. The smallest cash balance amount is determined by how easy it is to raise funds when needed, how expe

Define the finance function, Q. Define the finance function? Is it a risk-r...

Q. Define the finance function? Is it a risk-return trade off? What is the basic role of a modern financial manager? What is the basic importance of finance function in the mana

Yield spread strategies, Bond market can be classified into various s...

Bond market can be classified into various segments based on the nature of characteristics such as type of issuer (central bank, corporate etc.), credit risk (ris

Performance of mutual funds, Performance of Mutual Funds The performanc...

Performance of Mutual Funds The performance of Mutual Funds can be evaluated by calculating the rate of return earned during the relevant comparison period. The return will inc

Approximating the percentage price change using duration, Let us expr...

Let us express the process of calculating approximate percentage price change for a given change in yield and a given duration using the following formula:

Define political risk into the capital budgeting process, How would you inc...

How would you incorporate political risk into the capital budgeting process of foreign investment projects? One method is to adjust the cost of capital upward to imitate politi

Business have a positive accounting profit, Can a business have a positive ...

Can a business have a positive accounting profit and a negative economic profit? Please explain.

Illustrate about foreign exchange earnings, Q. Illustrate about foreign exc...

Q. Illustrate about foreign exchange earnings? In theory foreign exchange earnings must not be hedged as the chances of an adverse movement are equivalent to those of a favoura

When comparing different projects than standard deviation, Why is the coeff...

Why is the coefficient of variation often a better risk measure when comparing different projects than the standard deviation? Whenever we wish to compare the risk of investmen

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