--%>
Assignment Help - homework help

Introduction of the term Cost of capital

Give a brief introduction of the term Cost of capital?

E

Expert

Verified

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.

   Related Questions in Business Economics

  • Q : Comparative advantage in production I

    I have a problem in economics on Comparative advantage in production. Please help me in the following question. The oranges are grown in Florida and potatoes are grown in Maine mainly since: (i) orange-grower’s in Maine have not lobbied effectiv

    		•
  • Q : Labour economic Can someone help me in

    Can someone help me in finding out the right answer from the given options. The Taft Hartley Act of 1946 made it illegal to encompass a: (1) Right-to-work law passed by the state legislature. (2) Conviction for the misdemeanor and serve as union officer. (3) Union for the agricultural migrants or go

    		•
  • Q : What are the criteria of issuing stocks

    What are the criteria of issuing stocks or bonds?

    		•
  • Q : Managerial Economics Managerial

    Managerial Economics Meaning and definition Managerial economics general refer to the integration of economy th

    		•
  • Q : Economics chapter 1 Suppose that on the

    Suppose that on the basis of a nation's production curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. Relate this information to the following statement: "Thr

    		•
  • Q : Explain Unemployment Explain

    Explain Unemployment, Growth, and the Future?

    		•
  • Q : What is the basic principle of

    What is the basic principle of comparative advantage?

    		•
  • Q : Example of simultaneous changes in both

    Elucidate an example of simultaneous changes in both supply and demand?

    		•
  • Q : Business Economics Hello, I would like

    Hello, I would like help with my assignment.

    		•
  • Q : Price competition My friend can't

    My friend can't succeed to get the answer of this question. Give me solution of this question. From a heterodox perspective, why does destructive price competition drive enterprises to set up market institutions which would abolish price competition?

    		•