Introduction of the term Cost of capital
Give a brief introduction of the term Cost of capital?
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It is a procedure of increasing the funds that involves the cost in planning the capital structure, the employ of capital must be able of earning revenue to meet the cost of capital. There are changes in this due to two reasons which are illustrated below: i) Interest rates are least than dividend rates. ii) Interest paid on borrowed capital is a permissible for income tax purposes.
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Quantity TR TC 0 $0.00 $10.00 1 $150.00 $30.00 2 $290.00 $50.00 3 $420.00 $80.00 4 $540.00 $120.00 5 $650.00 $170.00 6 $750.00 $230.00 7 $840.00 $300.00 8 $920.00 $
“The legal form an enterprise assumes is dictated primarily by the financial requirements of its particular line of production.” Do you agree?
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Define the following terms?
Write down the common factors influencing capital structure?
Patent rights: It is a unique license or right granted to a company or an Individual to make a specific product or utilize a specific technology.
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