--%>
Assignment Help - homework help

Calculation of weighted average cost of capital

Calculation of weighted average cost of capital: Under this following steps are undertaken:

1. Record amount in respect of various long term resources of firm.

2. Add up the amount of all long term resources to obtain total of the long term resources of the capital.

3. Calculate proportion of various long term resources to total of long term resources by dividing amount obtained in step 1 above by amount obtained in step 2 above.
4. Obtain information about expected returns of various long term resources or their cost of capital rate.

5. Multiply step 3 amount with step 4 figures to obtain proportionate cost of individual long term resources.

6. Add up the various costs obtained under step 5 to obtain weighted average cost of capital.

   Related Questions in Financial Accounting

  • Q : Operation of currency forward and

    Describe basic differences between operation of a currency forward market and a futures market.

    		•
  • Q : Portfolio of Sharemarket SHAREMARKET

     SHAREMARKET ASSIGNMENT SHEET  - Select a share portfolio consisting of one company from each group listed above. The total value of your portfolio should add up to

  • Q : Define the term Accounts Payable

    Accounts Payable: It is an accounting entry which symbolizes an entity's obligation to pay off a short-term debt to its creditors. Accounts payable entry is found on balance sheet beneath the heading current liabilities. Accounts payable are frequentl

    		•
  • Q : Define Margin Improvement Margin

    Margin Improvement: Margins in the business remained beneath pressure, even previous to the economic downturn for the industry as an entire, returns on capital have continued under the cost of capital. Previous to the falls in the second half of the y

    		•
  • Q : Financial report Details of Assignment

    Details of Assignment : You are required to form a team (group) of 3 to 4 m embers. Let your lecturer know the names of your team members. Select a set o f financial statements for a group of companies and obtain approval from your le cturer for the group of companies that you have selected.

    		•
  • Q : Types of shares What are types of

    What are types of shares issued by a company

    		•
  • Q : Define Budget Manual Give a short

    Give a short introduction of the term ‘Budget Manual’?

    		•
  • Q : Benefits of investing through

    List the benefits of investing through the international mutual funds?

    		•
  • Q : Case study of a hospitals Radiology

    The typical mid-sized hospital trying to keep its head above water in the increasingly tight health care market. It has determined that a critical area for it in today’s market is customer service. Until eight or nine years ago, hospital’s had a reputation

    		•
  • Q : Calculation of weighted average cost of

    Calculation of weighted average cost of capital: Under this following steps are undertaken: 1. Record amount in respect of various long term resources of firm. 2. Add up the amo

    		•