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What is the concept of marginal cost of capital?
The marginal cost of capital (MCC) is the cost of the last dollar of capital raised, essentially the cost of another unit of capital raised. As more capital is raised, the marginal cost of capital rises.
What are the different cost concept?
different cost concept
Elaborate the cost concept is important for decision making?
Cost concept for Decision making ?
What is the concept of opportunity cost?
Opportunity cost is a similar concept to cost of capital, except that it suggests that "your money can only be spent once." The opportunity cost of a purchase is the loss of potential value (monetary or otherwise) incurred because one item is purchased rather than another. For example: the opportunity cost of buying a coat might be the value of having new shoes instead. In supply and demand, the question is of capital and equipment utilization -- how much of other products must you choose not to make in order to make a unit of a product? For example: how many caps will be made instead of gloves, where the opportunity cost is the value of the gloves that will not be made (the choice that was not taken).
What happens when the cost of capital increases?
The market value of a firm's equity increases, the cost of capital decreases.
Why is the cost of capital concept so important?
Cost of capital is cost of debt and cost of equity. The concept of cost of capital is important as it depicts the opportunity cost of making a specific investment.
What is the concept of marginal cost of capital?
The marginal cost of capital (MCC) is the cost of the last dollar of capital raised, essentially the cost of another unit of capital raised. As more capital is raised, the marginal cost of capital rises.
When computing the amount of interest cost to be capitalized in the concept of avoidable interest refers to?
a cost if capital charge for stockholder's equity
What is the difference between financial capital maintenance and physical capital maintenance?
what is the defference between physical concept of capital and financial concept of capital
The cost of capital should reflect the average cost of the various sources of long-term funds a firm uses to acquire assets?
Yes, the cost of capital is a weighted average of the various sources of long-term funds a firm uses, such as equity and debt. By considering the different costs and proportions of each source, the cost of capital provides a comprehensive measure of the overall cost of financing for the firm's assets.
What are the various bases for determining the proportions to be employed in calculating the weighted average cost of capital?
i have to study
What are the different cost concept?
different cost concept
What is the meaning of capital cost?
what is capital cost
What do you understand by cost of capital?
cost of capital
What are the seven continents of the earth and their capital?
The seven continents of the Earth are Asia (capital: various), Africa (capital: various), North America (capital: various), South America (capital: various), Antarctica (no official capital), Europe (capital: various), and Australia (capital: Canberra).
Is capital a fixed cost?
capital is a fixed cost
What is the scope of human capital management?
The concept and scope of human capital management
