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Concept and measurement of the cost of capital

The evaluation of the worth of a long-term project suggests a certain norm or standard against which benefits are to be judged. Requisite norm is known by different names like hurdle rate, cut-off rate, required rate and minimum rate of return and so on. This standard is generally expressed in terms of the cost of capital. Concept and measurement of the cost of capital is, hence, another major aspect of capital budgeting decision.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9581062

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