Question

Name of the decision in financial management which determine the overall cost of capital and the financial risk of the enterprise.

Answer 1

Financing decision
Factors affecting financing decision : Cost. The cost of raising funds from different sources are different.
Risk. The risk associated to each of the source is different.
Floatation Cost.
Cash Flow Position of the Company.
Fixed Operating Cost.
Control Considerations.
State of Capital Market.
Return on Investment (RQl)