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Why do you use the overall cost of capital for investment decisions even when only one source of capital will be used?
Wiki User
∙ 9y ago
The overall cost of capital is the cost of the opportunity to make a certain investment. A financial manager uses the overall cost of capital as a way to gauge the rate of return of one investment over another.
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoThis done usually because depending on the project it can be financed at a low cost with not much debt left.
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What are the goal of privatisation?
to aquire a new source of investment capital
What are the three types of financial management decisions and what questions are they designed to answer?
The three types of financial management decisions include capital structure, capital budgeting and working capital. They are designed to answer the main source of capital used to run the firm.
What is maximise?
Growth depends on the volume of investment. Investment depends on capital availability. Capital may come from either internal or external source. External source of capital is costly where as internal generation of funds is economical. Generation of internal capital depends on profit making capacity of a firm. Hence, profit maximization would automatically lead to growth maximization
What is growth maximisation?
Growth depends on the volume of investment. Investment depends on capital availability. Capital may come from either internal or external source. External source of capital is costly where as internal generation of funds is economical. Generation of internal capital depends on profit making capacity of a firm. Hence, profit maximization would automatically lead to growth maximization
What are the three types of financial management decision and what question are the designed to answer?
The three types of financial management decisions include capital structure, capital budgeting and working capital. They are designed to answer the main source of capital used to run the firm.
In recent years the most important source of private capital flow into emerging or Third World economies has been?
direct investment from abroad
What decesion effect cash flow?
Decisions that effect cash flows are receivables collections, amount of inventory to keep on hand, and investment projects. Some decisions such as increasing available inventory are a use of cash, and others are a source of cash.
Where does Mexico's second largest source of foreign investment?
What is Mexico second largest source of foreign investment
The impact of capital market on foreign direct investment in nigeria?
capital market serve as a source of resource to multinationals that wish to source their finances locally, in other words the market provides means of finance to multinational companies, capital market can also serve as an indicator that can attract or repel FDI flow since it serves as a thermometer that measures the economy
How does McDonald's obtain capital for their operations?
McDonalds finances its Operations through Share Capital & Retained Earnings mainly. Another source of finance is the Current Liabilities. Apparently McDonalds has Negative Working Capital which means the investment in Debtors & Inventory & Emergency Cash Reserve is very low.
What are source of bank funds?
The sources of funds for banks are as follows:Take money from the capital investment on the bankTake money from the money deposited into their accounts by customersBorrow money from other banksBorrow money from the central bank of the country
What is the difference between source of funds and sources of funds?
sources of fund means from where the capital we are getting & source of fund means how we can get the capital.
