Significance of cost of capital

Significance of cost of capital:

A. Base of capital budgeting decisions:

The company wants to invest his money in various projects. Then it will compare their cost of capital and the company will not at all invest his money in that project whose cost of capital is lower than other project.

B. Base of redesigning of capital structure:

The cost of capital influences capital structure designing. The capital structure is just mixed of equity and debt and sources that company wants to acquire from investors. At that Time Company chooses that mixture of equity and debt in which cost of capital will become minimum. With this, company can raise the value of shares.

C. Base of other decisions:

There are many numbers of decisions and similar to dividend policy, interest policy that is depending on accurate computation of cost capital.

Latest technology based Finance Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Finance help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Finance, project ideas and tutorials. We provide email based Finance help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Finance. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Finance Homework help and assignment help services. They use their experience, as they have solved thousands of the Finance assignments, which may help you to solve your complex issues of Finance. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.

©TutorsGlobe All rights reserved 2022-2023.