Web Site

Financing-issues.org



» Financing » Topics begins with C » Capital cost set


Page modified: Saturday, June 24, 2006 10:36:06

For a financing title f its capital cost set r is left \ (f \ right) that expected interest rate, with which only the creation of the financing title is possible.

It gives

  • the own capital funds cost set for f, if f is a participation title,
  • the outside capital cost set for f, if f is a demand title,
  • the total capital cost set for U, if U is an enterprise.

Since one "“packs together"” financing titles can (e.g. into a fund), gives it also for each compound financing title a capital cost set.

  • Thus own capital funds of an enterprise can be understood as compound financing titles of all participation titles of the enterprise.
  • Thus the outside capital of an enterprise can be understood as compound financing titles of all demand titles of the enterprise.

Characteristics

Total capital cost set

Is

  • U an enterprise, whose liabilities consist only of priority outside capital and subordinate own capital funds,
  • EK \ left (U \ right) own capital funds of the enterprise U,
  • Fiber plastic \ left (U \ right) the outside capital of the enterprise U,
  • r \ left (EK \ left (U \ right) \ right) the own capital funds cost set of the enterprise U,
  • r \ left (fiber plastic \ left (U \ right) \ right) the outside capital cost set of the enterprise U,
  • r \ left (U \ right) the total capital cost set of the enterprise U,
  • V \ left (EK \ left (U \ right) \ right) the market value of own capital funds of the enterprise U,
  • V \ left (fiber plastic \ left (U \ right) \ right) the market value of the outside capital of the enterprise U,
  • V \ left (U \ right) the market value of the enterprise And.

Then V applies \ left because of V \ left (U \ right) = V \ left (EK \ left (U \ right) \ right) + (fiber plastic \ left (U \ right) \ right):

  • r \ left (U \ right) = = and/or
  • r \ left (U \ right) \ cdot V \ left (U \ right) = r \ left (EK \ left (U \ right) \ right) \ cdot V \ left (EK \ left (U \ right) \ right) + r \ left (fiber plastic \ left (U \ right) \ right) \ cdot V \ left (fiber plastic \ left (U \ right) \ right)

Related Websites

We found here 3 related websites.

Page cached: Wednesday, July 5, 2006 23:47:48
Valid XHTML 1.0!  Valid CSS!

Page copy protected against web site content infringement by Copyscape