Cost of Capital Firms need to make capital investment i.e.‚ purchasing fixed assets such as factories‚ machineries‚ equipment‚ etc. After deciding what capital investments to make‚ they need to decide on the financing – sources of capital. The sources: Long-Term Debt‚ Common Stock‚ Preferred Stock and Retained Earnings. Then they need to find the cost of obtaining each source of financing today (not historical). Cost of Capital - The rate of return that a firm must earn on its investment
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What is cost of capital? The cost of capital is the cost of obtaining funds‚ through debt or equity‚ in order to finance an investment. It is used to evaluate new projects of a company‚ as it is the minimum return that investors expect for providing capital to the company‚ thus setting a benchmark that a new project has to meet. Importance The concept of cost of capital is a major standard for comparison used in finance decisions. Acceptance or rejection of an investment project depends on the
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Learning Outcome 1: “Understand and evaluate different methods of assessment of child development”. There are many theories which look at child’s development and the impact internal and external factors can have on these. For this assignment I will be exploring a theoretical perspective which will look at how child development is assessed. This will link in with my child observation undertaken within a nursery setting. Child development is a process where children learn skills called their
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PARTICIPATORY METHODS By Dr. Linda Mayoux ABSTRACT: PARTICIPATORY METHODS Participatory methods should be an integral part of any impact assessment for enterprise development. Their use is necessary to addressing the concerns of both the sustainable livelihoods approach and the human rights approach in DFID-funded enterprise interventions. Participatory methods are now well developed in relation to project-level impact assessment. CONTENTS: Introduction Section 1: WHAT ARE PARTICIPATORY METHODS? PRINCIPLES
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A project is very different from an operation work. In fact‚ projects and operations comprise the only two aspects of work existing in any organization. Of course‚ depending on the size and the needs of the organization‚ projects may or may not be part of existing programs or portfolios- both of them can be broken into several projects (PMI‚ 2013). Projects and operations are different in various ways. Here I list some of them in contrast: initiation‚ duration‚ operation process and budget. 1. Initiation
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MODULE 9 CAPITAL BUDGETING THEORIES: Basic Concepts Decision Making Process 2. The first step in the decision-making process is to A. determine and evaluate possible courses of action. B. identify the problem and assign responsibility. C. make a decision. D. review results of the decision. Strategic planning 39. Strategic planning is the process of deciding on an organization’ A. minor programs and the approximate resources to be devoted to them B. major programs
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research study aims to identify the effect of the location of the computer shops to the... Methodology is the systematic‚ theoretical analysis of the methods applied to a field of study. It comprises the theoretical analysis of the body of methods
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he scientific method‚is a method or procedure that characterizses science according to the observations‚measurements‚tests‚and the hypothesis of an experiment.The scientific method has been around since the Renaissance began to do the studying of what inductive reasoning was‚going all the way back into the 10th Century. Even though it was founded by many philosophers its said to have derived mainly from two contibutors; Aristotle and Greek philosophers.Aristole‚aj ancient greek philosopher who invented
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Application of Logit Model in Personal Credit Ranking Econometrics Term Project Supervisor: Dr. Le Cong Tru Class 19 – Group 3 – Member list: Nguyen Duy Chinh Le Minh Tien Dinh Thi Tan Hong Nguyen Hung April‚ 2013 Abstract Personal credit ranking‚ a new emerged field in banking‚ has been given the expectation to growth in the next few years. Although various ranking methods have existed for years‚ it is needed to have credit ranking models for this purpose. From articles in banking
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Summary of the project Heublein‚ Inc.‚ develops manufactures‚ and markets consumer food and beverages products domestically and internationally. The capital project process of Heublein was chiefly concern with the financial justification of the project including a focus on cost benefit analysis and minimal emphasis on execution of the projects‚ since there were no mechanism to assure that non-financial results were achieved. As a result of these weaknesses‚ some major projects went over budget and
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