Question

4. 'Equity Capital has also a Cost.' Explaining it discuss the method of measuring the cost of equity capital​

Answer 1

Answer:

4. 'Equity Capital has also a Cost.' Explaining it discuss the method of measuring the cost of equity capital

Answer 2

Calculating the cost of equity capital is a little difficult as compared to debt capital and preference capital. The main reason is that the equity shareholders do not receive fixed interest or dividend. The dividend on equity shares varies depending upon the profit earned by an organization.