Quires Related to Accounts

197 views 3 replies
Dear Sir,

Please explain the below points

Cost of Capital
Present Value
Rate of Return

Appreciate your Help.
Replies (3)
Cost of capital may be considered as finance / interest costs towards borrowed capital
Cost of capital is the minimum rate of return or profit a company must earn before generating value.

Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Present value takes the future value and applies a discount rate or the interest rate that could be earned if invested.

Rate of return (ROR) is the loss or gain of an investment over a certain period, expressed as a percentage of the initial cost of the investment.
Cost of capital is the cost incurred for maintaining the capital . There are two ways of maintaining cost of capital ...Weighted average cost of capital and cut off rate . Cost of debt , cost of equity which are being calculated on the basis of certain assumptions.
PRESENT VALUE OF MONEY IS FV/(1+R)^n
Today you hv invested some amount of money
what will be the value of same amount of money after 5 years.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details