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21 May, 01:31

In contrast to cost of capital, financial capital does what?

I1. s the combination of debt and equity reflects the firm's financial leverage

2. Refers to the debt and equity claims making up the liability side

3. Is a decision variable in financial planning

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  1. 21 May, 01:59
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    2. Refers to the debt and equity claims making up the liability side

    Explanation:

    The cost of capital is the cost of the owners of the business gives to their investment

    While the financial capital is the investment made for third parties in exchange of interest yields. Also it may be convertible to equity if preferred for the investor or based on terms in the contract.
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