What is performance appraisal - cost of capital, Financial Management

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What is Performance appraisal - cost of capital

Performance appraisal further, cost of capital framework can be used to evaluate financial performance of top management. I such an evaluation will include a comparison of actual profitability of investment projects undertaken by the firm with project overall cost of capital, and actual cost incurred by management in raising the required funds.

Cost of capital also plays a useful role in dividend decision and investment in current assets.

 

 


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