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What is the meaning of Capital Equivalent?
Capital budgeting is determined by EAC, the Equivalent Annual Cost. The EAC is the annual cost of owning an asset for as long as it is usable.
Is capital a fixed cost?
capital is a fixed cost
Why does causes cost of capital increase?
element of risk is the factor which causes the cost of capital to increase as much the risk as much the cost of capital.
What is the average cost of capital of the company If company cost of equity is 12 percent and cost of debt is 8 percent and the company is financed 35 percent by debt and tax rate 30 percent?
Cost of capital = (debt * percentage) + (Equity * percentage) Cost of capital = 8 * 0.35 + 12 * 0.65 Cost of capital = 2.8 + 7.8 Cost of capital = 10.6
What are the main elements in calculating cost of capital How would an increase in debt affect the cost of capital How would you identify the optimal cost of capital for an organization?
Capital is calculated by subtracting the business costs from the profits gained from products and services. An increase in debt would decrease the total capital by increasing business costs. The optimal cost of an organization is low debt and high credits.
What is the meaning of Capital Equivalent?
Capital budgeting is determined by EAC, the Equivalent Annual Cost. The EAC is the annual cost of owning an asset for as long as it is usable.
What do you understand by cost of capital?
cost of capital
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.
Is capital a fixed cost?
capital is a fixed cost
What are the various concept of cost of capital?
concepts of cost of capital
Why is Weighted Average Cost of Capital important to an organization?
imoportant of capital cost to a hotel imoportant of capital cost to a hotel
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 are the objective of cost of capital?
objective of the cost of capital is to exercise control over the cost
What is meant by the term capital cost?
the capital cost is the exact price
What is meaning Capital A of alpha kappa rho?
AKRHO
What is the difference between WACC and cost of capital?
Cost of capital is that amount which is incurred by business to acquire cost for working capital or business while WACC(Weighted average cost of capital) is that cost which is calculated if there is more than one type of capital is involved by business to arrange finances for business.
How do you compute the Marginal Cost of Capital schedule?
Marginal or incremental cost of capital is cost of the additional capital raised in a given period
