The Cost of Capital


The Cost of Capital
To expand operations, firms often require more funds than can be generated from operations. These additional funds require a long-term source of capital. There are two primary means of raising the required additional funds: borrowing the funds (bonds), or selling ownership (stock shares). There is a cost to the firm of raising capital using either method. The firm expects to receive a financial benefit from the assets acquired with the raised capital. To ensure the benefit outweighs the cost of the capital, the firm must determine with some accuracy the cost of the capital and compare it to the benefit to be received. Determining the cost of borrowing is straightforward. Calculating the cost of selling shares in the firm is more complex.
Do the following to complete this assignment:
For a custom paper on the above topic or any other topic, place your order now!
What Awaits you:
In-time delivery guarantee
Masters and PhD-level writers
Automatic plagiarism check
100% Privacy and Confidentiality
High Quality custom-written papers

The post The Cost of Capital appeared first on Infinite Essays.



Source link

 
"If this is not the paper you were searching for, you can order your 100% plagiarism free, professional written paper now!"
WhatsApp Inquire from us on matters homework
%d bloggers like this: