Friday, January 11, 2008

Job of Finance Department - Cost of Capital

The finance staff, meanwhile developed estimates of the cost of capital for each division

page 29
Valuation

It is the job of finance department to monitor financial markets and estimate cost of capital from each source of finance. From that information they should be able to set cost of capital for various projects and divisions in the company.

Cash flow projects have to be done by operating managers for various projects that they propose.

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