Describe the method of determining the Company Cost of Capital?

Q: how do i calculate total paid in capital

A: Paid in capital is the total amount which is received by the company from issuing shares to the…

Q: how changes in Working Capital affect Cashflow?

A: Working capital or net working capital is equals to firm’s current assets minus current liabilities,…

Q: Why are taxes and inventory conisdered as working capital

A: Inventory, representing the goods or materials held by a business for sale or production, directly…

Q: hat does it mean by analyse profitability of invested capital

A: Introduction : In simple words, invested capital refers to the sum of all the funds that a business…

Q: Briefly describe the different sources of capital that are considered when calculating the weighted…

A: 1. Equity Capital (Common Equity):The money raised by the business via the sale of common shares to…

Q: What is issued capital? How does it differ from Authorized capital?

A: Company needs the funds for business purpose. Hence, Company raise capital.

Q: What is the impact of working capital on the cash flow statement?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: at is the relationship between WACC and capital structur

A: In the capital budgeting decisions WACC is very important and it act as hurdle rate of return what…

Q: following heads in the accounti

A: Accounting principle follows the double entry system of recording transactions. To reconcile the…

Q: what is meant by Working Capital and, the meanings of Receivables, Inventory and Payables?

A: Meaning of Working Capital  Working capital, also referred as net working capital (NWC), is the…

Q: Define asymmetric information theory (capital structure)

A: Capital structure plays an important role for any organization & it would be generally in the…

Q: The weights used in calculating the weighted average cost of capital should be based on ___

A: The Answer:

Q: A) What is cost of capital? What does it represent?   B)  Why is it important to estimate cost of…

A: Sources of Finance means from where a business or firm is taking money in order to fund out its…

Q: Describe the Principle of Investing in Financial Assets?

A: The financial assets are those assets which are not having a physical existence like stocks, fixed…

Q: how to find paid in capital

A: It is an equity account on a company's balance sheet. .It represents the amount of money received…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.