Question: Hello I'm having trouble finding out how to answer this... Calculate and discuss your cost of capital as a percentage for both the short-term (within
Hello I'm having trouble finding out how to answer this...
Calculate and discuss your cost of capital as a percentage for both the short-term (within 1 year) and long-term (over 1 year). How much is this funding going to cost you? If self-funding, think in terms of lost savings interest or retirement gains. If debt, think in terms of loan or credit card percentages. If equity, think in terms of how much your investors will expect as a return on their initial investment.
I'm using self-funding with a loan for this example.
lets say $20,000 at 5% self funding
and $100,000 from a loan at 6%
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