weighted average

cost of capital
18- Hirak Desai
19- Siddharth Dhorajiya
20- Devesh Gandhi
21 Krushali Gandhi
22- Sani Gandhi

INTRODUCTION
The projects cost of capital is the
minimum required rate of return on
funds committed to the project,
which depends on the riskiness of its
cash flows.
The firms cost of capital will be
the overall, or average, required rate
of return on the aggregate of
investment projects
2

SIGNIFICANCE OF THE COST OF

CAPITAL

Evaluating investment decisions

Designing a firms debt policy
Appraising the financial performance
of top management