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Capital Structure& Cost Of Capital

 Capital Structure       The financial requirement of a firm can be met through ownership capital and/or borrowed capital. The ownership capital refers to the amount of capital contributed by the owners. In case of a company, it refers to the amount of funds raised by issuing Shares. The main characteristic of … Read more

Cost of Capital

COST OF CAPITAL   The primary meaning of cost of capital is simply the cost an entity must pay to raise funds. The term can refer, for instance, to the financing cost (interest rate) a company pays when securing a loan.   In other words, Cost of capital refers to the opportunity cost of making a specific Investment. It is the rate … Read more