Providing Guidance

Providing Guidance

Introduction

Debt and Equity construct the capital structure of the company. When investing in new project or plan, companies usually go for mixture of debt and equity as both comprises of benefits and drawbacks. This paper will focuses on literature or previous studies on guidelines given for analyzing Genesis's cost of capital considering the WACC, MCC, and leverage.

Discussion

The sources of funds can be initiated through debt, equity & hybrid securities. Common stock and preferred stocks are part of equity while long term and short term loan is part of debt financing. Hybrid Securities are debt and equity combination. ...