--%>
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 : Trading A CD/$ bank trader is presently

    A CD/$ bank trader is presently quoting a small figure bid-ask of 35-40, while rest of the market is trading at the CD1.3436-CD1.3441.  Specify what all is implied about trader’s beliefs by his prices?

    		•
  • Q : Define status and role Define status

    Define status and role, explain the difference between the two, provide illustrations.

    		•
  • Q : Monetary approach to determine exchange

    Derive and explain monetary approach in order to determine the exchange rate.

    		•
  • Q : Backward and forward internalization

    Discuss and compare the backward vs. forward internalization.

    		•
  • Q : Balance sheet A listing of the

        A listing of the liabilities, assets, and equity of an entity at a point in time, the end of a month, or quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet gives the reader what the entity owns (assets)

    		•
  • Q : Define sale Define the meaning of sale

    Define the meaning of sale in Accountancy?

    		•
  • Q : Bretton Woods’s system programmed to

    Comment over the below proposition: “One can say that Bretton Woods’s system was programmed to the eventual demise”. 

    		•
  • Q : Matlab Applications in Image and Video

    Image and video processing is most difficult topic in electrical and electronics field. This topic becomes trickier if you are taking use of Matlab in this. Student faces a lot of problem in image and video processing theories. If you are messed up with same difficulties

    		•
  • Q : Define Money fund Money fund: Money

    Money fund: Money fund is as well main instrument of the money market. This fund that can be employed for fulfilling the requirements of banks to repay the customers.

    		•
  • Q : Report on Business memo analyzing

    Write a Report on Business memo analyzing monthly sales of a company. Try to explain it with graphs.

    		•