Q69
Complete the following sentence: Estimating capital requirements is important for the _______________________ [1 Mark]
Expert Answer
Estimating capital requirements is important for the:
Costs of fixed and current assets
Cost of Capital procurement
Cost of future development and expansion
Fixed assets (like, plant machinery, land, building etc) and current assets (like investments, bills recievable, cash in hand etc) helps in valuation of company. Similarly in capital procurement, shares, debntures etc may increase of decrease profit of the company hence capital can increase or decrease. Lastly costs of expansion are to be considered so as the company should grow in future in the particular
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