Cost of Capital

Cost of Capital

Introduction

In present day financial market, funding is an important concern for business managers. Corporations are always in the need of funding and it has become a complex tool to determine how funds must be arranged. Another important consideration relating to this area is effective management of capital structure.

Scope of the Paper

The paper will analyze the feasibility and benefits of funding through debt or equity. Based on the evaluation, it will conclude and recommend the most feasible and advantageous method of funding based on current economic situation.

Discussion

In business language, there are two forms of financing; equity and debt. ...