P. 1
Cost of Capital

Cost of Capital

Ratings: (0)|Views: 328|Likes:
Published by atharpimt
fm
fm

More info:

Categories:Topics, Art & Design
Published by: atharpimt on Oct 18, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less

09/29/2012

pdf

text

original

 
 
COST OF CAPITAL
 
 
 The chapter covers
Meaning of cost of capitalImportance of cost of capitalClassification of costComputation of Cost of capital
Computation of specific cost
Cost of Debt
Cost of Preference share
Cost of Equity share
Overall cost of capital
 
 
Meaning of Cost of Capital
 The cost of capital to a firm is the minimumreturn, which the suppliers of capital require.
For a firm it is a price for obtainingcash.
In other words,
COC means
that rate which is
 paid for the use of capital.
Each source of funds has different cost,suchas cost of equity share capital, cost of preference share capital, cost of debt, cost of retained earning.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->