Ques:- Explain cost of capital and its importance.
Asked In :-
Peoplefy Infosolutions, Bajaj Finserv Lending, Shakti Pumps, Invesco, First American Corporation, Capgemini Invent, Zaggle, Great Ormond Street Hospital, Yakult, Bikanervala,
Right Answer:
Cost of capital is the rate of return that a company needs to earn on its investments to maintain its market value and attract funds. It is important because it serves as a benchmark for evaluating investment opportunities, helps in budgeting and financial planning, and influences decisions on financing and capital structure.
Cost of capital is the rate of return that a company needs to earn on its investments to maintain its market value and attract funds. It is important because it serves as a benchmark for evaluating investment opportunities, helps in budgeting and financial planning, and influences decisions on financing and capital structure.