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Business

Management

opportunity cost of capital for a safe investment?

Foundations of Business (MindTap Course List)

6th Edition

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter16: Mastering Financial Management

Section: Chapter Questions

Problem 5DQ

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Class book: Fundamentals of Corporate Finance by Brealey, Myers, and Marcus

Cost of Capital. Why do financial managers refer to the opportunity cost of capital?

How would you find the opportunity cost of capital for a safe investment?

Approach to decide on the efficient procurement and investment of funds for the day-to-day operations of a business. Financial management aims at profit maximization, and it includes financing and capital budgeting.

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