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concepts of cost of capital

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Q: What are the various concept of cost of capital?
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Why is the cost of capital concept so important?

Cost of capital is cost of debt and cost of equity. The concept of cost of capital is important as it depicts the opportunity cost of making a specific investment.


What is the concept of marginal cost of capital?

The marginal cost of capital (MCC) is the cost of the last dollar of capital raised, essentially the cost of another unit of capital raised. As more capital is raised, the marginal cost of capital rises.


When computing the amount of interest cost to be capitalized in the concept of avoidable interest refers to?

a cost if capital charge for stockholder's equity


What is the difference between financial capital maintenance and physical capital maintenance?

what is the defference between physical concept of capital and financial concept of capital


What are the various bases for determining the proportions to be employed in calculating the weighted average cost of capital?

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What are the different cost concept?

different cost concept


The cost of capital should reflect the average cost of the various sources of long-term funds a firm uses to acquire assets?

Yes, the cost of capital is a weighted average of the various sources of long-term funds a firm uses, such as equity and debt. By considering the different costs and proportions of each source, the cost of capital provides a comprehensive measure of the overall cost of financing for the firm's assets.


What do you understand by cost of capital?

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What is the meaning of capital cost?

what is capital cost


Is capital a fixed cost?

capital is a fixed cost


Elaborate the cost concept is important for decision making?

Cost concept for Decision making ?


What is the scope of human capital management?

The concept and scope of human capital management