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
calculate total equity
![Liabilities
Customer Deposits (Current)
65,764.35
Customer Deposits (Savings)
Customer Deposits (Term)
46,511.78
Total Cust. Deps.
112,276.13
Deps. from Banks
Repos and Securities Lending
Commercial Paper and ST Borrowings
Customer Deposits and ST Funding
1,784.52
3,299.64
117,360.29
Senior Unsecured Debt
16,234.39
Subord. Debt - Banks
Covered Bonds
4,200.73
Other Long-Term Funding
Total LT Funding
20,435.12
Total LT Funding Maturing in less than 1 year
4,768.32
Trading Liabilities
Total Funding Excl. Derivatives
Derivatives (Liabilities)
137,795.42
7,665.73
Total Funding Incl. Derivatives
145,461.14
FV Portion of Debt
Credit Imp. Reserves
147.70
Reserves for Pensions & Other
346.50
Current Tax Liabs.
233.17
Def. Tax Liabs.
Other Def. Liabs.
Discontinued Operation Liabilities
Insurance Liabilities
Other Liabilities
3,776.20
Total Liabs. Excl. Pref. Shares & Debt Hybrid Capital
149,964.71
Pref Shares & Hybrid Cap Acctd Debt
2,267.58](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed22068e-e780-4fba-bfd8-66ece87aee86%2F2bdd4fee-ceed-4429-979e-442498d41dad%2Fyie6mu8_processed.png&w=3840&q=75)
![Equity
Common Equity
14,353.26
Non-controlling Interest
Secs. Reval. Reserves
7.43
FX Reval. Reserves
Fixed Asset Reval. & Other Accum. OCI
102.18
Total Equity
14,462.88
Pref. Shares & Hybrid Cap. Acctd. for as Equity
278.69
Published Equity
14,741.57
Total Liabilities & Equity
Total Liabs. & Equity- Banks
166,973.85
Other Supporting Data](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed22068e-e780-4fba-bfd8-66ece87aee86%2F2bdd4fee-ceed-4429-979e-442498d41dad%2F5dv79_processed.png&w=3840&q=75)
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