factor to consider when estimate working capital in finacing project
Revenue affects the capital by decreasing the capital.
profitability
It increase liquidity.
Credit
factor to consider when estimate working capital in finacing project
1. A company wants to increase capital using equity financing will involve in issuing share capital to public for subscription.
how do capital and human capital increase the gdp wealth and income of nations
Capital account increases when capital is introduced, shares are issued, increase in retained profits, etc.
element of risk is the factor which causes the cost of capital to increase as much the risk as much the cost of capital.
Capital is a Credit Balance account. To increase capital and therefore increase OE, you will Credit the account. Not DEBIT. You Debit Cash, Credit Capital.
Revenue affects the capital by decreasing the capital.
Firm can increase it's working capital by issuing more capital to public or by getting shore term loan from market.
Increase in capital per worker does increase real wages. The higher the productivity, the higher the standards of living.
profitability
Increase capital through additional investment of the owner, increase in income Decrease capital through withdrawal of the money made by the owner, incur losses
Disadvantage of share capital is that it increases the risk of default which causes the increase in cost of capital.