Question
In: Accounting
1-Reddy Pvt. Ltd Company is analyzing their financial statement and reach to the conclusion that their...
1-Reddy Pvt. Ltd Company is analyzing their financial statement and reach to the conclusion that their cost of capital is very high. As a finance manager of Reddy Pvt. Ltd. Company why you think that cost of capital is important for the company and how balance it?
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Expert Solution
As a finance manager of Reddy pvt. Ltd. Cost of captital is very important key of every business . That is the soul of every business. And investors are ready to investment them. The capital is the source of finance in business. Without capital the business doesn't work more time. And without capital the business doesn't make her bright future and fer profit income. And all investors are interested invest and get good return to you. Amd the capital is used in demand and supply. And as a finance manager make a good planning for running business like how to use capital in business and how much expenses in there. As a finance manager he always thought progress of our business . He always thought about his business and her workers. And see his business always progress. And for a manager he thought always all expenses and profit. And don't think about what's do.
How balance it :- for a finance manager for adjustment of cost of capital he knows about all upper and down in business. And always he have made a target and in every situation have catch. And know about everyone whatsy they need.
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