Financial Management

Capital Structure: Concept, Factors

Capital Structure - Concept, Factors

One of the important decisions under financial management relates to the financing pattern or the proportion of the use of different sources in raising funds.  Most companies plan to raise funds for their capital needs using a judicious mix between owners funds (equity) and borrowed funds (debt). This mix of equity and debt actually used by a …

Capital Structure: Concept, Factors Read More »

Cost of Capital: Concept, Types

Cost of Capital

The cost of capital is the cost of a company’s funds (both debt and equity). In words of Solomon Erza “The cost of capital is the minimum required rate of earnings or the cut-off rate of expenditure”. From Investor’s point of view, it is the rate of return, that must be received by the firm on its investment projects, to attract …

Cost of Capital: Concept, Types Read More »

error: Content is protected !!