GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cost of equity capital
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final approval
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evaluation
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all the above
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Detailed explanation-1: -(i) long term debt and loans, (ii) preference share capital. (iii) equity share capital, and. (iv) the retained earnings. 28-Jul-2022
Detailed explanation-2: -To determine cost of capital, business leaders, accounting departments, and investors must consider three factors: cost of debt, cost of equity, and weighted average cost of capital (WACC).
Detailed explanation-3: -Cost of Capital is the expected returns from a project, based on which the management of an organisation decides to invest in a project. It evaluates the risk of undertaking a particular project, and the expected rate of return on the investment, to determine the feasibility of spending their time and money on it.
Detailed explanation-4: -When budgeting, businesses of all kinds typically focus on three types of capital: working capital, equity capital, and debt capital.