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Cost of Capital Meaning and Example in Simple language Class 1 – Part 1



CMA. Chander Dureja

1.COST OF CAPITAL BY CHANDER DUREJA 9717356614:
2.Is the cost of capital the same as WACC
3.What is debt cost of capital
4.What is the cost of capital for a project
5.What is the definition of weighted average cost of capital
6.cost of capital example
7.cost of capital formula
8.cost of capital in financial management
9.significance of cost of capital
10.cost of capital formula example
11.components of cost of capital
12.types of cost of capital
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25 thoughts on “Cost of Capital Meaning and Example in Simple language Class 1 – Part 1
  1. SIR CAN WE CALCULATE FLOTATION COST ON ISSUE PRICE RATHER THAN FACE VALUE
    I.E. FACE VALUE 100 DISCOUNT 10% FLOTATION COST 10%
    FLOTAION COST = 10%(100-100*10%)
    THAT IS 9

  2. THANK YOU FOR REPLY.
    SO IF WE CALCULATED FLOTATION COST ON ISSUE PRICE OF DEBENTURE BY TAKING SPECIAL ASSUMPTION WILL IT BE CONSIDERED WRONG.

  3. SIR AS PER SECTION 76 OF COMPANIES ACT, UNDERWRITING COMMISSION CAN NOT BE MORE THAN 2.5% OF ISSUE PRICE, WHICH CONSIDER ISSUE PRICE AND ONE OF THE MAJOR COMPONENT OF FLOTATION COST IS UNDERWRITING COMMISSION.
    SO I THINK EVEN TAKING ISSUE PRICE WILL ALSO BE CORRECT.
    PLEASE GUIDE.

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