# Get a Thorough Insight of Computation of Specific Cost Capital

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It is a hassle for a lot of students to do calculations and computations. The subject can be mind boggling if it largely based on formulas and calculation. We have a good deal of solutions for you at helpmeinhomework.com with available Computation of Specific Cost Capital homework help.

## Let’s get to know the subject better

Specific cost of capital is a very vital part of economics and accounting. It is basically the cost of funds of a particular company (both debt and equity). For an investment to serve you in the long run, the return on capital that is expected should be more than the cost of capital. Every investor expects atleast a minimum return for providing a company with capital. This sets the benchmark for a new project.

### How do you compute the specific capital cost?

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We have a fair idea of the areas you might face problems in. Computation of Specific Cost capital assignment help comes in handy as a guide to every possible question that can come to your mind. To name a few:

• Cost of debt and equity
• Cost of retained earnings and internal equity
• Weighted average of cost of capital
• Capital structure
• Miller theorem
• Debt and equity financing
• Opportunity cost

### Breaking it down further

The cost can be different for every company for various capitals. It depends on a lot factors such as credit worthiness, profitability, operating history, etc. Every company needs to prepare a game plan to finance the business at an early stage. The cost of capital becomes a deciding factor of which financing track to follow- equity, debt or to combine them and go about it. An optimal finance mix is what companies to strive to attain based on the cost of capital on each funding source. Debt financing is more tax efficient than equity financing.

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