ACCT 250 Management Accounting (ACCT 250)

Section 1 Introduction to Cost of Capital 2Should We Concern About Short Term Obligations?  No!!!  Only non seasonal debts with explicit interest costs should be considered;  Payables, accruals and other obligations with similar nature are excluded;  In addition maturity hedging approach requires to achieve a match between duration of investment and the debt; 5Should We Consider Historical Costs  No!!!  Finance focuses on future cash flows;  The cost of each element in WACC ...