Business means cost viability and profit. Every single rupee counts. When a company planning to launch a new project its financial viability is the primary concern. The Company Director Board and management is responsible to answer many people including shareholders and investors. A simple definition of Cost of Capital is the expenses required to accumulate capital for the business. This can be done by issuing shares or taking loans. Cost of Capital is the return we give to the investors for using their money as the capital. If we take loan, interest is the Cost of Capital. If the company is acquiring fund by issuing shares, dividend (a part of profit) to shareholders is the Cost of Capital. If you can be an expert in checking the financial viability of a project, many companies need you. Please see the presentation for details.

Sreekala P

52 resources

0

1

2

Like