ANSWER If a enterprise is nanced exclusively by using debt, the value of capital equalstheprice of debt. If a business is financed exclusively via equity, the value of capital equals the value of equity. Ordinarily, corporations use a combination of fairness and debt to finance their activities. In such circumstances, the price of capital is weighted common of all capital sources. In September 2015; Agthia Group financed 18.55% of its belongings using debt capital. The price of fairness at the identical time changed into 16.01% and the price of debt become 4.91%