Coverage Ratio | Financial Management by CA Raj K Agrawal

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    Cost of capital is the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. When analysts and investors discuss the cost of capital, they typically mean the weighted average of a firm's cost of debt and cost of equity blended together.

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    Capital structure in corporate finance is the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. It refers to the make up of a firm's capitalisation. It is the mix of different sources of long term funds such as equity shares , preference shares , long term debt , retained earnings etc

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