The typical sources of long term capital available to the firm. Introduction: Capital refers to the source of long term financing for the firm which include both debt and equity. The cost of capital is the opportunity cost involved in making a specific investment. The rate of return required to make an investment in a capital budgeting project is known as the cost of capital. Capital structure refers to the components of the cost of capital.

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Chapter 9.1, Problem 9.3RQ

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The typical sources of long term capital available to the firm.

Introduction:

Capital refers to the source of long term financing for the firm which include both debt and equity.The cost of capital is the opportunity cost involved in making a specific investment. The rate of return required to make an investment in a capital budgeting project is known as the cost of capital. Capital structure refers to the components of the cost of capital.

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