Computation or methods of calculating cost of capital

The cost of capital can be calculated by different methods these are discussed as below:

 (I) Computation of cost by specific source of finance

1) Cost of debt: cost of debt means the interest payable on the debentures. For example, if the company issue Rs 40000, 10% debentures at par in that case before tax cost of debt will be Continue reading “Computation or methods of calculating cost of capital”

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