Is cost of capital set by investors or managers?

Q: how the capital structure, cost of capital, and dividend decisions are related?

A: A dividend is a distribution of a portion of a corporation's earnings to a class of shareholders…

Q: Explain some of the factors that can affect the cost of capital and describe whether or not it is…

A: The cost of Capital can be affected by many things. It may be within the control of the company or…

Q: Why is working capital given special attention in the process of analyzing balance sheets?

A: Working capital is the measure which evaluates the ability of a company to pay off the short-term…

Q: What is operating capital, and why is it important?

A: Answer: Companies need funds to acquire net operating assets and to run day-to-day business…

Q: What is the goal of capital structure management?

A: In simple words, capital structure management refers to the process under which the managers take…

Q: What is Financial Capital to you? Can you define financial capital and physical capital?

A: Capital Capital is referred to as anything through which the owner can confer benefit or value and…

Q: How is working capital calculated? Define Liquidity.

A: The working capital refers to the part of the capital that requires to meet the day-to-day…

Q: hat does it mean by analyse profitability of invested capital

A: Introduction : In simple words, invested capital refers to the sum of all the funds that a business…

Q: Distinguish between the company cost of capital and project cost of capital?

A: Answer: Differences between project cost of capital and company’s cost of capital: Project cost of…

Q: How is Working Capital calculated?

A:

Q: what is the benetifs of the accountants involvement in the capital investment decision?

A: In capital investment decision it is advisable to involve accountant. Following are the benefits for…

Q: xplain how is cost of capital used to make financial decisions? Why do you think funds generated…

A: In capital budgeting, the cost of capital is used to select projects with higher profitability so…

Q: Explain what is capital or capital financing? Examples

A: capital financing is the form of business finance that is raised through equity funds and lenders…

Q: What is the impact of working capital on the cash flow statement?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: What do you understand by Financial Capital ? What is the difference between Financial capital and…

A: The Answer

Q: Calculate RETURNED ON INVESTED CAPITAL by referring the pictures of Financial Position and Statement…

A: Please see the next step for the solution

Q: What is a working capital, and how does it differ from other types of capital? What role does it…

A: Business process are the sequential steps followed by the stakeholders to reach a certain goal. Each…

Q: What is operating capital?

A: Introduction: In any business, operating capital is the most important asset that enables a company…

Q: What is meant by working capital? What is significance of working capital management?

A: Working capital is the amount which the company would require to fund its day to day operations. It…

Q: Why do we use the overall cost of capital for investment decisions even when only one source of…

A: The question is based on the concept of Financial planning.

Q: Define the term Paid-in capital?

A: Stockholders’ equity: Stockholders’ equity is referred to as the claims of the stockholders on the…

Q: company's cost of equity capital?

A: Given :  Beta of Stock = 1.29 Risk free rate = 5.4% Expected return on market = 12.9%   Formula for…

Q: What is the difference between authorized capital, issued capital and additional paid in capital?

A: The assets and cash of a firm are referred to as capital. Capital might be cash, machinery,…

Q: A) What is cost of capital? What does it represent?   B)  Why is it important to estimate cost of…

A: Sources of Finance means from where a business or firm is taking money in order to fund out its…

Q: What is the weighted average cost of capital?

A: The formula to compute weighted average cost of capital as follows:

Q: Does weighted average cost of capital is similar to Cost of Capital?

A: Cost of capital refers to the return expected by the company for making investments in projects or…

Q: What is the Cost of Equity? What is the Weighted Average Cost of Capital? WACC

A: Interest on debt = 9% Weight of Debt = 60% Weight of Equity = 40% Risk Free Rate in USA = 6% Risk…

Q: What is meant by the term “working capital management”?  What accounts are involved in working…

A: Working capital management: The title administration of working capital alludes to the…

Q: Which is more important to a company capital or O&M? Why?

A: Capital Expenditure Capital expenditure is one of the important  factors of the company.  It is the…

Q: What is the difference between the Company cost of capital and  project cost of capital?

A: Cost of capital of a company is also called as weighted average cost of capital.  It considers the…

Q: How do the types of assets used affect a firm’s capital structure?

A: There are 2 types of assets, fixed assets and current assets. Fixed assets have life for long period…

Q: What is the use of Capital Investment Decisions in a business as well as its role, function and how…

A: Investment appraisal or evaluation is the two-fold task of balancing risk pertain to a definite…

Q: What is investor-supplied operating capital?

A: Investor-supplied operating capital is the capital that is provided by the equity shareholders and…

Q: What is the actual cost of capital to the borrower?

A: The cost of capital to the borrower is the weighted average cost of capital from all sources of…

Q: What is working capital? How does working capitalrelate to the operating cycle?

A: Working capital: Working capital refers to the excess amount of current assets over its current…

Q: Briefly explain the meaning of working capital and working capital management. Also explain the…

A: Explaination: Working capital is an essential term that measures the amount of operational cash…

Q: Describe the process of calculating the Company Cost of Capital?

A: Firms often operate their company using the capital generated from different sources. That involves…

Q: Why is the management of working capital important?

A: Working capital can be defined as that portion of capital invested by a businessman to fulfill his…

Q: . What are the components of a working capital? Is it important? Why or why not?

A: Working capital is the net of the current assets and current liabilities of a business. Current…

Q: weighted average cost of capital

A: WACC stands for Weighted Average cost of capital refers to the cost of capital of the company which…