--%>
Assignment Help - homework help

Describe composite cost of capital

Briefly describe composite cost of capital? And also describe the procedure to calculate composite cost of capital?

E

Expert

Verified

Composite cost of capital is also termed as weighted average cost of capital that is a calculable unit for it. It as well tells about the constituent costs of common stock, preferred stock, and debt. Each of these constituents is given weighted on the base of the associated interest rate and losses and other gains with it. It shows the cost of each other capital as alongside the average cost of total capital increased. The procedure to calculate this is primary calculating the weighted average cost of capital that is the compilation of weights of further costs summed together. The method is given as:-

WACC = WD (cost of debt) + Ws (cost of stock/RE) + WP (cost of pf. Stock)

   Related Questions in Business Economics

  • Q : What does high or low operating

    What does high or low operating leverage specify?

    		•
  • Q : How can we calculate EPS How can we

    How can we calculate EPS?

    		•
  • Q : Describe composite cost of capital

    Briefly describe composite cost of capital? And also describe the procedure to calculate composite cost of capital?

    		•
  • Q : Utilitarianism of Jeremy Bentham with

    The utilitarianism of Jeremy Bentham would clash most strongly along with the philosophic principles of: (w) the epicureans who followed the teachings of Epicurus [c. 341 to 271 BC]. (x) hedonism. (y) the Greek philosophers and mediev

    		•
  • Q : Example of self interest to define

    The concept of _____ was demonstrated by _____ along with the quotation, “The defeat of a bit finger would remain the average European from sleeping which night,... but, given he never saw them, he will snore along with the most profound security over the loss o

    		•
  • Q : Which type of maximization required in

    Productive (technical) efficiency needs maximization of the: (i) opportunity cost of a specified value of output. (ii) resources used to produce a specified value of output. (iii) value of output produced for a given total cost. (iv) satisfaction atta

    		•
  • Q : What is American made in today’s global

    Illustrates how hard it is to define what is “American made” in today’s global economy?

    		•
  • Q : Problem on current production

    I have a problem in economics on current production possibilities frontier. Please help me in the following question. The combination of 70 units of clothing and 30 units of food are: (1) Completely employs the economy's capacity. (2) Would leave most

    		•
  • Q : Importance of Economics Importance of

    Importance of Economics:Economics has become one of the major branches of social sciences. This is of enormous practical value in our day by day life. In pure sciences, we study the subject

    		•
  • Q : Limitation of intermediaries for

    Intermediaries do not classically: (w) reduce transaction costs. (x) absorb risk. (y) try to make profits. (z) cause prices to be more volatile. I need a good answer on the topic of Economic problems. Please give m

    		•