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hello I have a question... I donot understand whats cost of
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hello

I have a question...

I donot understand whats cost of capital?plz explain it and its components

why is there a cost for retained earnings?

WACC= wiri+wprp+wrrp+wnrn.....   I= debt  p=preferred stock  r= retained earnings   n= common stock

why is debt divided into preferred and common stock    ...and why is retained earnings not included into common stock

what does this mean 

'the cost of capital is the relevant   discount rate used in analyzing an investment

thank you


Question (1) Please explain concept behind cost of capital and its components.

 

The cost of capital is simply the opportunity cost of funds allocated to a certain investment. The decision to...

 







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