Answered: What are the factors that influence a…

Business

Economics

What are the factors that influence a company’s cost ofcapital?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter11: Marketing And Distribution

Section: Chapter Questions

Problem 15AA

See similar textbooks

Related questions

Q: What is MARR and how do you choose it?

A: While making a decision to invest in a new project, the managers of companies do an analysis to…

Q: Write sources of financing for a building materials company?

A: Any business to operate/function requires funds, the tools used to acquire these funds are…

Q: Give one example on how time value of money is applied in decision making.

A: The time value of money (TVM) is a useful tool in helping you understand the worth of money in…

Q: How can APT be used in investment decision?

A: Investment refers to an asset or item whose sole purpose is to generate income for the owner or…

Q: How might different ethical philosophies, influence how managers makes decisions when it comes to…

A: There are different ethical philosophies like : Kantian theory : In Kantian theory, offshoring…

Q: Examine with suitable examples, how "Vision and Mission statement" influence the organization's…

A: In business economics, mission and vision statements are the plans and future goals of the business.

Q: Price Marginal cost 0 AVC Average total cost Demand Marginal revenue Quantity Discuss the firm…

A: According to the question here The graph in question is related to the Monopoly firm where .…

Q: What are the similarities and differences betweenthe product and retail life cycles?

A: The lifecycle of the product can be described as the phases that a newly launched product achieves…

Q: lanatio

A: Bill Gates has founded Microsoft with Paul Allen which is the largest software business of the world…

Q: Marissa, a single mother with one child, can’t seem to make ends meet. Rent and utilities eat up…

A: The Supplemental Nutrition Assistance Program (SNAP, formerly the Food Stamp Program) is available…

Q: What are the steps involved in the process for capital decision-making?

A: Capital decision-making:- A company's allocation of funds for the purchase of long-lived (long-term…

Q: What do sales managers need to do to manage theirsales force successfully?

A: The sales force refers to the team of workers who are responsible for the selling of goods, and…

Q: When is it necessary to use factorial design

A: A class of experimental designs which are economical is known as factorial design.That is with the…

Q: what is mode of entry meaning?

A: Mode of entry refers to different channels through which a business can enter the international…

Q: What are the different types of costs?

A: Cost is the amount that has to spend for obtaining something. There are different types of costs;…

Q: Short analysis about Tesla Inc. in 2018?

A: Tesla Motors was formed in Silicon Valley in 2003 by a group of engineers, including the…

Q: Look at the attached and help

A: Given: Total cost for capital = 4 units * $10 = $40 Total cost for raw materials = 5 units * $4 =…

Q: ng FOC for each

A: Answer Budget constraint : I = P121 + P2.02 + R = Implies R=1- P1.21 - 02.02 = Substitute this…

Q: Account for what motivates rental firm’s investment decisions?

A: In the wording of the management of finance and budget, the investment decision is a method of…

Q: What specific tasks arc assigned to the engineering staff in a firm?

A: The specific tasks might differ according to the field of engineering. The main task of the…

Q: Distinguish between product costs and period costs?

A: The cost incurred after the product is sold is refers to period cost, which includes shipping cost,…

Q: lease do fast ASAP

A: A customer is a person who consumes goods and services at a given price. It means the customer buys…

Q: discuss gains can a general contractor in the building business get from web collaboration?

A: In the workplace web collaboration refers to the employment of internet-based technology to…

Q: What is engineering economi

A: Economy refers to an area where production ,consumption and distribution activities are done. The…

Q: Q.1 Explain why effective time management is specially important for sales professionals? Give…

A: Time management is the process of planning and balancing your time among various activities. Good…

Q: Please do fast ASAP fast

A: An aggregate demand curve shows the inverse relationship between the price level and the total…

Q: What are some of the benefits of segmentation within a company?

A: Company segmentation is the process where a company divides their current market into quadrants,…

Q: Unique answer asap thanks

A: We know that The money demand refers to the total amount of all the money demanded in the economy.…

Q: Why is it essential to keep a close eye on fixed expenses?

A: Fixed expenses or overhead costs are that part of production costs which do not fluctuate with the…

Q: What is Intangible property? Give some examples?

A: The assets or the properties are the resources owned by the firm in order to generate revenue. It…

Q: Why do you need to learn engineering economy?

A: Engineering economics is a part of economics that is applied in various engineering projects. It is…

Q: AVC AFC

Q: Write the advantages and disadvantages of Cost benefits.

A: The cost-benefit analysis is a tool that is used to calculate benefit which can be gained after…

Q: In his request t. asked to pay E an appliance w What simple im

A: Given: Principal (P): 325,800.00 Interest (I): $ 34,317.60 Time = 60 dAYS

Q: Create your own creative ethical principle with a combination of ethical principles in Ethics.

A: ANSWER STEP-1 RESPECT FOR PEOPLE:- Respect for individuals This principle contains 2 parts of…

Q: If TC = 12q - 12q2 +32q + 32 and have a budget of 100000$, how many units we can produce and stay…

A: It is given that: TC = 12q3 - 12q2 + 32q + 32 The budget is $100,000

Q: Shawna bought an antique table for $200 last year and is now selling it for $250. Her rate of return…

A: Given Details - Buying price = 200 Selling price = 250

Q: What is the unit contribution margin?

A: It represents the additional money that is generated by each unit sold after subtracting variable…

Q: In 2006, the five leading suppliers of digital cameras in the United States were Canon, Sony, Kodak,…

A: I would do nothing since my price is optimal.

Q: Explain the concept of the time value of money?

A: The time value of money is the widely accepted concept that explains that there is greater…

Q: When can a business owner be earning a profit but not covering costs?

A: Economic profit refers to the profit that obtained by deducting the implicit cost or opportunity…

Q: When putting up a franchise business, which is better, buying or leasing the land?

A: Franchise refers to the taking up or acquiring of a business from a parent business and opening its…

Question

What are the factors that influence a company’s cost of
capital?

Expert Solution

Step 1

Cost of capital- It is the cost of the funds of a company or, from the point of view of an investor, the necessary rate of return on the outstanding shares of a portfolio company. It is used to assess a firm's new projects. It is the minimum return required by investors to supply the business with money, thereby setting a benchmark that a new assignment needs to follow.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.