Beginning palances: Assets Liabilities Ending Balances Assets Liabilities During the year: -Net income / Net loss Additional nvestment Drawings KJC 100,000 40,000 215,000 90,000 20, 000 50,000 5,000 JBA 200,000 150,000 258,000 130,000 50,000 40,000 12,000 HPL 300,000 160,000 283,000 170,000 25,000 8,000 60, 000 Shim 416, 000 190,000 284,000 170,000 -58,000 6,000 60,000 Hong 250,000 190,000 133, 000 80,000 30,000 3,000 40,000
Cost of Debt, Cost of Preferred Stock
This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the load of every cost of the capital component then they're going to estimate the general cost of capital. The cost of capital refers to the return rate that an organization gives to its investors. If an organization doesn’t provide enough return, economic process will decrease the costs of their stock and bonds to revive the balance. A firm’s long-run and short-run financial decisions are linked to every other by the assistance of the firm’s cost of capital.
Cost of Common Stock
Common stock is a type of security/instrument issued to Equity shareholders of the Company. These are commonly known as equity shares in India. It is also called ‘Common equity
Which company has the highest ending capital?
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