Cost of capital is measured in terms of weighted average cost of capital. In this the total capital value of a firm without any outstanding warrants and the cost of its debt are included together to calculate the cost of capital. Traditional approach is also known as net income approach but it is the simplest form.
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What is capital structure? What are the principles of capital structure management?
Capital structure is a term which is referred to be the mix of sources from which the long term funds are required …
Principles of cost structure management - Cost Principle ,Risk Principle,Control Principle
Cost Principle: this principle deals with the ideal capital structure which should minimize cost of financing and maximize the earnings per share…
What are the internal factors affecting capital structure?
The internal factors which are affecting capital structure are as follows:-…
What are the external factors affecting capital structure?
The external factors which are affecting the capital structure are as follows:-
What are the general factors affecting capital structure?
The general factors which are affecting the capital structure are as follows:-Company constitution,Company characteristics,Stability of Earnings…
Compare Component cost and Composite cost.
The component cost is the one which comes under the cost of capital and it has three levels:-…