Measures to improve the Trade Unions
1) There should be a strong base to develop the Trade Union by safeguarding the interest
of the members and by achieving the target of production.
2) To make effective unionism there should be one union in one industry.
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3) As most of the unions are influences by political parties. Hence, there interference
should be eliminated.
4) There should be training programmes to develop the internal leadership.
5) It will be more effective if office bearers of the Trade Unions are well paid.
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6) As most of the Trade Unions in India are financially weak. This problem can be solved
by raising the membership and collecting more funds for unions.
7) Most of the unions are engaged in industrial disputes they do not undertake economic,
social and cultural activities which are equally important for raising welfare of the
working class. As a considerable number of Trade Unions are not recognized. Hence, the
proper recognition of unions will make them more effective.
1) There should be a strong base to develop the Trade Union by safeguarding the interest
of the members and by achieving the target of production.
2) To make effective unionism there should be one union in one industry.
JOIN SOON @COMMERCEOPTIONAL
3) As most of the unions are influences by political parties. Hence, there interference
should be eliminated.
4) There should be training programmes to develop the internal leadership.
5) It will be more effective if office bearers of the Trade Unions are well paid.
JOIN SOON @COMMERCEOPTIONAL
6) As most of the Trade Unions in India are financially weak. This problem can be solved
by raising the membership and collecting more funds for unions.
7) Most of the unions are engaged in industrial disputes they do not undertake economic,
social and cultural activities which are equally important for raising welfare of the
working class. As a considerable number of Trade Unions are not recognized. Hence, the
proper recognition of unions will make them more effective.
Workers’ Participation in Management
The concept of workers’ participation in management is a broad and complex one.
Depending on the socio-political environment and cultural conditions, the scope and
content of participation may change. Various terms have come to be used to denote
different forms and degree of participation.
For example, joint consultation, labour-management cooperation, codetermination, joint
decision making, workers’ participation in industry and workers’ participation in
management. These terms or their variants have been interpreted and explained
differently. In any case, a common thread running through all interpretations is the idea
of associating employees in managerial decision- making.
The International Institute for Labour Studies defined WPM as “the participation resulting
from practices which increase the scope for employee’s share of influence in decisionmaking at different tiers of organizational hierarchy with concomitant assumption of
responsibility”.
The concept of workers’ participation in management is a broad and complex one.
Depending on the socio-political environment and cultural conditions, the scope and
content of participation may change. Various terms have come to be used to denote
different forms and degree of participation.
For example, joint consultation, labour-management cooperation, codetermination, joint
decision making, workers’ participation in industry and workers’ participation in
management. These terms or their variants have been interpreted and explained
differently. In any case, a common thread running through all interpretations is the idea
of associating employees in managerial decision- making.
The International Institute for Labour Studies defined WPM as “the participation resulting
from practices which increase the scope for employee’s share of influence in decisionmaking at different tiers of organizational hierarchy with concomitant assumption of
responsibility”.
Objectives and Aims of WPM
It would be more appropriate to classify the objectives of Workers Participation in
Management in the following broad categories:
Ethical or Moral Objectives
In an ethical or moral context, participation in decision making is designed to promote
individual development or fulfilment in accordance with the conception of human rights
and dignity to which the Universal Declaration of Human Rights (1948) probably gives
the most widely published expression. The declaration reads-“All human beings are born
free and equal in dignity and rights. They are endowed with reason and conscience and
should act towards one another in a spirit of brotherhood. Further, everyone, as a member
of society… is entitled to realization…of the economic, social and cultural rights
indispensable for his dignity and the free development of his personality”.
The Special Advisory Committee, set up by the Government of Jamaica, defined
“Workers’ Participation” as “the extension of the individual’s human rights at the work
place” and stressed that “the procedures, institutions, rules and styles of management
should bring the worker’s recognition, treatment and attention as a human being rather
than as a mere statistical unit of production”
Socio-Political Objectives
Political democracy ceases to have much significance in the absence of democracy in
economic life. A citizen cannot be regarded as sufficiently mature for political democracy
if he is denied democratic rights in his economic life. The industrial democracy
programme adopted by the Swadeshi Trade Union Confederation in 1971 emphasised:
“Industrial democracy is part of the effort made by the labour movement to extend
democracy throughout society…Life away from the workplace has developed in one way
and life at the workplace in another. The difference constantly grows and is at the root of
the increasing need which employees feel to exert an influence on conditions of work and
on management…If arbitrary situations are allowed to persist in one sector of society, they
are an obstacle to the progress of democracy in the other sectors…Industrial democracy
should be regarded as part of the general process of democratization.”
In our own country, the Second Five Year Plan, which was directed to the establishment of
a socialist society, stated that a socialist society was based not only on cash incentives but
also on the idea of serving the community and its willingness to recognize such service.
So, individual workers must be induced to feel that in their own way they were helping to
build a state directed towards progress. Consequently, the introduction of industrial
democracy was a prerequisite for the establishment of a socialist society.
Economic Objectives
Economic objectives relate directly or indirectly to increasing the efficiency of the
undertaking. By associating the workers with the decisions taken, it is hoped to improve
the quantity and quality of output and the utilisation of labour, raw materials, equipment
and introduction of new techniques. There is growing awareness of the fact that the
knowledge, experience and intelligence of those who actually do the work are not
sufficiently used for improving industrial organisation and methods. Through
participation, it is also hoped to reduce the areas of conflict of interest between
management and labour and to improve labour relations.
The implications of workers’ participation in management is summarised as follows;
• Workers have ideas, which can be useful.
• Effective upward communication facilitates sound decision-making at the top.
• Workers may accept decisions better if they participate in them.
• Workers may work harder if they share in decisions that affect them.
• Workers may work more intelligently if, through participation in decision-making, they
are better informed about the reasons for and the intention of decisions
It would be more appropriate to classify the objectives of Workers Participation in
Management in the following broad categories:
Ethical or Moral Objectives
In an ethical or moral context, participation in decision making is designed to promote
individual development or fulfilment in accordance with the conception of human rights
and dignity to which the Universal Declaration of Human Rights (1948) probably gives
the most widely published expression. The declaration reads-“All human beings are born
free and equal in dignity and rights. They are endowed with reason and conscience and
should act towards one another in a spirit of brotherhood. Further, everyone, as a member
of society… is entitled to realization…of the economic, social and cultural rights
indispensable for his dignity and the free development of his personality”.
The Special Advisory Committee, set up by the Government of Jamaica, defined
“Workers’ Participation” as “the extension of the individual’s human rights at the work
place” and stressed that “the procedures, institutions, rules and styles of management
should bring the worker’s recognition, treatment and attention as a human being rather
than as a mere statistical unit of production”
Socio-Political Objectives
Political democracy ceases to have much significance in the absence of democracy in
economic life. A citizen cannot be regarded as sufficiently mature for political democracy
if he is denied democratic rights in his economic life. The industrial democracy
programme adopted by the Swadeshi Trade Union Confederation in 1971 emphasised:
“Industrial democracy is part of the effort made by the labour movement to extend
democracy throughout society…Life away from the workplace has developed in one way
and life at the workplace in another. The difference constantly grows and is at the root of
the increasing need which employees feel to exert an influence on conditions of work and
on management…If arbitrary situations are allowed to persist in one sector of society, they
are an obstacle to the progress of democracy in the other sectors…Industrial democracy
should be regarded as part of the general process of democratization.”
In our own country, the Second Five Year Plan, which was directed to the establishment of
a socialist society, stated that a socialist society was based not only on cash incentives but
also on the idea of serving the community and its willingness to recognize such service.
So, individual workers must be induced to feel that in their own way they were helping to
build a state directed towards progress. Consequently, the introduction of industrial
democracy was a prerequisite for the establishment of a socialist society.
Economic Objectives
Economic objectives relate directly or indirectly to increasing the efficiency of the
undertaking. By associating the workers with the decisions taken, it is hoped to improve
the quantity and quality of output and the utilisation of labour, raw materials, equipment
and introduction of new techniques. There is growing awareness of the fact that the
knowledge, experience and intelligence of those who actually do the work are not
sufficiently used for improving industrial organisation and methods. Through
participation, it is also hoped to reduce the areas of conflict of interest between
management and labour and to improve labour relations.
The implications of workers’ participation in management is summarised as follows;
• Workers have ideas, which can be useful.
• Effective upward communication facilitates sound decision-making at the top.
• Workers may accept decisions better if they participate in them.
• Workers may work harder if they share in decisions that affect them.
• Workers may work more intelligently if, through participation in decision-making, they
are better informed about the reasons for and the intention of decisions
• Workers’ participation may foster a more cooperative attitude amongst workers and
management, thus, raising the efficiency by improving team spirit and reducing the loss
of efficiency arising from industrial disputes.
• Workers’ participation may act as a spur to managerial efficiency. Conversely, it has
been pointed out that the absence of participation results in misunderstanding, resistance,
low morale and suspicion.
• generate commitment of all employees to the success of the organization;
• enable the organization better to meet the needs of its customers and adapt to changing
market requirements and hence to maximize its future prospects and the prospects of
those who work in it;
• help the organization to improve performance and productivity and adopt new
methods of working to match new technology, drawing on the resources of knowledge
and practical skills of all its employees;
• improve the satisfaction the employees get from their work; and
• provide all employees with the opportunity to influence and be involved in decisions,
which are likely to affect their interests.
management, thus, raising the efficiency by improving team spirit and reducing the loss
of efficiency arising from industrial disputes.
• Workers’ participation may act as a spur to managerial efficiency. Conversely, it has
been pointed out that the absence of participation results in misunderstanding, resistance,
low morale and suspicion.
• generate commitment of all employees to the success of the organization;
• enable the organization better to meet the needs of its customers and adapt to changing
market requirements and hence to maximize its future prospects and the prospects of
those who work in it;
• help the organization to improve performance and productivity and adopt new
methods of working to match new technology, drawing on the resources of knowledge
and practical skills of all its employees;
• improve the satisfaction the employees get from their work; and
• provide all employees with the opportunity to influence and be involved in decisions,
which are likely to affect their interests.
Features of TQM
1. TQM is a pragmatic long-term systems approach: TQM is not a randomized approach.
It is not a buzzword. It is a concept, which can be adopted and practised through proper
planning, systematic evaluation and allocating responsibilities and resources. It is also not
a onetime strategy but a long-term continuous approach.
2. TQM is initiated and driven by top management: TQM is a strategic direction and
only the top management can trigger such a direction. Developing organisational vision,
mission, philosophy, strategies, objectives and plans is the responsibility of the top
management Top management, therefore, needs to be involved in TQM and the quality
improvement process and should lead the new way of thinking to bring innovations.
3. TQM aims at bringing about a total cultural change in every facet of the organisation:
TQM creates an organisational culture, which is conducive to continuous improvement.
Treating every other person receiving help as a customer and directing all efforts to satisfy
his needs is the primary purpose of every person in the organisation.
4. TQM interlinks and integrates the various subsystems of the organisation: Each
department in the organisation strives for excellence and tries to achieve its set objectives.
However, in most cases these departments conflict either in their objectives or approaches.
TQM tries to break down the barriers between the departments and integrates the
objectives of various departments with the main objective of the organisation so as to
follow the same common, unified approach for meeting the customer requirements.
1. TQM is a pragmatic long-term systems approach: TQM is not a randomized approach.
It is not a buzzword. It is a concept, which can be adopted and practised through proper
planning, systematic evaluation and allocating responsibilities and resources. It is also not
a onetime strategy but a long-term continuous approach.
2. TQM is initiated and driven by top management: TQM is a strategic direction and
only the top management can trigger such a direction. Developing organisational vision,
mission, philosophy, strategies, objectives and plans is the responsibility of the top
management Top management, therefore, needs to be involved in TQM and the quality
improvement process and should lead the new way of thinking to bring innovations.
3. TQM aims at bringing about a total cultural change in every facet of the organisation:
TQM creates an organisational culture, which is conducive to continuous improvement.
Treating every other person receiving help as a customer and directing all efforts to satisfy
his needs is the primary purpose of every person in the organisation.
4. TQM interlinks and integrates the various subsystems of the organisation: Each
department in the organisation strives for excellence and tries to achieve its set objectives.
However, in most cases these departments conflict either in their objectives or approaches.
TQM tries to break down the barriers between the departments and integrates the
objectives of various departments with the main objective of the organisation so as to
follow the same common, unified approach for meeting the customer requirements.
Suggestions for Improvements of IR
Few suggestions are given below that come with the promises of
improving the industrial relations and reducing the disputes between the
parties
1. Trade unions should be strengthened democratically so that they
can be a potent part of the industrial relations system.
2. Employers should be more transparent in their dealings with the
workers which in other way will help to build respective confidences
and progressive outlooks of the workers.
3. They should have open minded flexible collective Bargaining.
4. Workers should be allowed to participate in the management
through forums, committees and councils.
5. Sound labour policy, planning and articulation of the action plans
should get extreme priorities.
6. Proper leadership and communication are the essential
requirements of good industrial relations.
7. Enforcement of discipline is another prerequisite of good industrial
relations.
8. Trade unions activities should be controlled by the workers
themselves and not by the outside leadership.
9. Equity in distribution of wealth by acknowledging workers as team
members
Few suggestions are given below that come with the promises of
improving the industrial relations and reducing the disputes between the
parties
1. Trade unions should be strengthened democratically so that they
can be a potent part of the industrial relations system.
2. Employers should be more transparent in their dealings with the
workers which in other way will help to build respective confidences
and progressive outlooks of the workers.
3. They should have open minded flexible collective Bargaining.
4. Workers should be allowed to participate in the management
through forums, committees and councils.
5. Sound labour policy, planning and articulation of the action plans
should get extreme priorities.
6. Proper leadership and communication are the essential
requirements of good industrial relations.
7. Enforcement of discipline is another prerequisite of good industrial
relations.
8. Trade unions activities should be controlled by the workers
themselves and not by the outside leadership.
9. Equity in distribution of wealth by acknowledging workers as team
members
Industrial Relations in India
Industrial relations are concerned with the relationships between
management and workers and in this context the role of regulatory
mechanism comes into sharper focus in resolving any industrial dispute.
The relations between workers and management have undergone massive
changes in our country. There had been a system of king and his subjects,
all should work to improve the coffers of the king. Later Zamindars came
and workers were bonded labourers and were at their mercy at all respect.
Soon after the formation of East India Company and British Rule, a heart
less hires and fire system was established. Industrial workers were no
man’s child. Neither the employers nor the government cared for them.
There were no union, also. India saw the awakening of the working class
t the end of British period. The World War II, particularly, forced the
employers to become friendlier with the workers. Out of their self interest
to see uninterrupted production during war time, they became benevolent.
Industrial relations are concerned with the relationships between
management and workers and in this context the role of regulatory
mechanism comes into sharper focus in resolving any industrial dispute.
The relations between workers and management have undergone massive
changes in our country. There had been a system of king and his subjects,
all should work to improve the coffers of the king. Later Zamindars came
and workers were bonded labourers and were at their mercy at all respect.
Soon after the formation of East India Company and British Rule, a heart
less hires and fire system was established. Industrial workers were no
man’s child. Neither the employers nor the government cared for them.
There were no union, also. India saw the awakening of the working class
t the end of British period. The World War II, particularly, forced the
employers to become friendlier with the workers. Out of their self interest
to see uninterrupted production during war time, they became benevolent.
Commerce Optional (UPSC-IAS) pinned «https://www.civilservicegurukul.com/integrated-guidance-program-cum-test-series/»
Educational Updates
Tomorrow we are starting batch No 21 of UPSC commerce Optional Guidance program.
For more details contact @cadhananjay
Tomorrow we are starting batch No 21 of UPSC commerce Optional Guidance program.
For more details contact @cadhananjay
Books and Sources for References - Commerce Optional | Civil Service Gurukul
https://www.civilservicegurukul.com/books-for-references/
Join 🔜 @commerceoptional
For Guidance Program
Contact @CAdhananjay
https://www.civilservicegurukul.com/books-for-references/
Join 🔜 @commerceoptional
For Guidance Program
Contact @CAdhananjay
Batch 22 Last & Final Batch.pdf
2.6 MB
Batch will be start from 06th January 2020 and Syllabus will be completed by 28th February 2020.
Integrated guidance includes
1.11 Test Paper
2.Daily Answer writing practice
3.Current affairs for 12 months
4.Answer Sheet evaluation.
5.Model answer of test series question paper.
6.Individual focus on students by providing daily target to students.
7.Checking status of study of every students through Google sheet.
8.Query solve via mail or telegram
9.75 pages Booklets of Current Affairs
10. Some important topic notes in PDF
11. Every subject PDF Books.
For more details Contact @cadhananjay.
1.11 Test Paper
2.Daily Answer writing practice
3.Current affairs for 12 months
4.Answer Sheet evaluation.
5.Model answer of test series question paper.
6.Individual focus on students by providing daily target to students.
7.Checking status of study of every students through Google sheet.
8.Query solve via mail or telegram
9.75 pages Booklets of Current Affairs
10. Some important topic notes in PDF
11. Every subject PDF Books.
For more details Contact @cadhananjay.
👆🏻This Guidance program will be valid till mains 2020. so Aspirants can join now and participate in daily answer writing practice and attempt full test paper after prelims also
Many students are not able to write proper definition of Financial system in daily answer writing practice.
A financial system is a network of financial institutions, financial markets, financial instruments and financial services to facilitate the transfer of funds. The system consists of savers, intermediaries, instruments and the ultimate user of funds. The level of economic growth largely depends upon and is facilitated by the state of financial system prevailing in the economy. Efficient financial system and sustainable economic growth are corollary. The financial system mobilizes the savings and channelizes them into the productive activity and thus influences the pace of economic development. Economic growth is hampered for want of effective financial system. Broadly speaking, financial system deals with three inter-related and interdependent variables, i.e., money, credit and finance.
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For Commerce Optional :- Join 🔜@commerceoptional
Modigliani-Miller Proposition I
The Modigliani-Miller Proposition I Theory (MM I) states that under a certain market price process, in the absence of taxes, no transaction costs, no asymmetric information and in an perfect market, the cost of capital and the value of the firm are not affected by the changed in capital structure. The firm’s value is determined by its real assets, not by the securities it issues. In other words, capital structure decisions are irrelevant as long as the firm’s investment decisions are taken as given.
The Modigliani and Miller explained the theorem was originally proven under the assumption of no taxes. It is made up of two propositions that are (i) the overall cost of capital and the value of the firm are independent of the capital structure. The total market value of the firm is given by capitalizing the expected net operating income by the rate appropriate for that risk class. (ii) The financial risk increase with more debt content in the capital structure. As a result, cost of equity increases in a manner to offset exactly the low cost advantage of debt. Hence, overall cost of capital remains the same.
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The assumptions of the MM theory are:
1. There is a perfect capital market. Capital markets are perfect when
* investors are free to buy and sell securities
* investors can trade without restrictions and can borrow or lend funds on the same terms as the firms do
* investors behave rationally
* investors have an equal access to all relevant information
* capital markets are efficient
* no costs of financial distress and liquidation
* there are no taxes
2. Firms can be classified into homogeneous business risk classes. All the firms in the same risk class will have the same degree of financial risk.
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3. All investors have the same view for the investment, profits and dividends in the future; they have the same expectation of a firm’s net operating income.
4. The dividend payout ration is 100%, which means there are no retained earnings.
The Modigliani-Miller Proposition I Theory (MM I) states that under a certain market price process, in the absence of taxes, no transaction costs, no asymmetric information and in an perfect market, the cost of capital and the value of the firm are not affected by the changed in capital structure. The firm’s value is determined by its real assets, not by the securities it issues. In other words, capital structure decisions are irrelevant as long as the firm’s investment decisions are taken as given.
The Modigliani and Miller explained the theorem was originally proven under the assumption of no taxes. It is made up of two propositions that are (i) the overall cost of capital and the value of the firm are independent of the capital structure. The total market value of the firm is given by capitalizing the expected net operating income by the rate appropriate for that risk class. (ii) The financial risk increase with more debt content in the capital structure. As a result, cost of equity increases in a manner to offset exactly the low cost advantage of debt. Hence, overall cost of capital remains the same.
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The assumptions of the MM theory are:
1. There is a perfect capital market. Capital markets are perfect when
* investors are free to buy and sell securities
* investors can trade without restrictions and can borrow or lend funds on the same terms as the firms do
* investors behave rationally
* investors have an equal access to all relevant information
* capital markets are efficient
* no costs of financial distress and liquidation
* there are no taxes
2. Firms can be classified into homogeneous business risk classes. All the firms in the same risk class will have the same degree of financial risk.
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3. All investors have the same view for the investment, profits and dividends in the future; they have the same expectation of a firm’s net operating income.
4. The dividend payout ration is 100%, which means there are no retained earnings.
Cost of Capital – Meaning, Significance and Components
Investment in capital projects needs funds. These funds are provided by the investors like equity shareholders, preference shareholders, debenture holders, etc in expectation of a minimum return from the firm. The minimum return expected by the investors depends upon the risk perception of the investor as well as on the risk-return characteristics of the firm. This minimum return expected by the investors, which in turn, is the cost of procuring funds for the firm, is termed as the cost of capital of the firm. Thus, the cost of capital of a firm is the minimum rate of return that it must earn on its investments in order to satisfy the expectation of the various categories of investors who have invested in the firm.
A firm procures funds from various sources by issuing different securities to finance its projects. Each of these sources of finance entails cost to the firm. Since the minimum rate of return expected by various investors – equity investor and debt investor – will be different depending upon their risk perception of the firm, the cost of each source of finance will be different. Thus the overall cost of capital of a firm will be the weighted average of the cost of different sources of finance, with the proportion of each source of finance as the weight. Unless the firm earns this minimum rate of return, the investors will be tempted to pull out of the company, let alone, to participate in any further capital issue.
We have seen that the cost of capital of a firm is the minimum required rates of return of various investors – shareholders and debt investors- who supply funds to the firm. How does a firm determine the required rates of return of each investor? The required rates of return are market determined and is reflected in the market price of each security. An investor, before investing in a security, evaluates the risk-return profile of an investment and assigns a risk premium to the security. This risk premium and expected return of an investor is incorporated in the market price of the security. Thus the market price of a security is a function of the return expected by the investors.
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Significance of Cost of Capital
The basic objective of financial management is to maximize the wealth of the shareholders or the value of the firm. The value of a firm is inversely related to the cost of capital of the firm. So in order to maximize the value of a firm, the overall cost of capital of the firm should be minimized.
The cost of capital is of utmost importance in capital structure planning and in capital budgeting decisions.
* In capital structure planning a company strives to achieve the optimal capital structure in order to maximize the value of the firm. The optimal capital structure occurs at a point where the overall cost of capital is minimum.
* Since overall cost of capital is the minimum rate of return required by the investors, this rate is used as the discount rate or the cut-off rate for evaluating the capital budgeting proposals.
Investment in capital projects needs funds. These funds are provided by the investors like equity shareholders, preference shareholders, debenture holders, etc in expectation of a minimum return from the firm. The minimum return expected by the investors depends upon the risk perception of the investor as well as on the risk-return characteristics of the firm. This minimum return expected by the investors, which in turn, is the cost of procuring funds for the firm, is termed as the cost of capital of the firm. Thus, the cost of capital of a firm is the minimum rate of return that it must earn on its investments in order to satisfy the expectation of the various categories of investors who have invested in the firm.
A firm procures funds from various sources by issuing different securities to finance its projects. Each of these sources of finance entails cost to the firm. Since the minimum rate of return expected by various investors – equity investor and debt investor – will be different depending upon their risk perception of the firm, the cost of each source of finance will be different. Thus the overall cost of capital of a firm will be the weighted average of the cost of different sources of finance, with the proportion of each source of finance as the weight. Unless the firm earns this minimum rate of return, the investors will be tempted to pull out of the company, let alone, to participate in any further capital issue.
We have seen that the cost of capital of a firm is the minimum required rates of return of various investors – shareholders and debt investors- who supply funds to the firm. How does a firm determine the required rates of return of each investor? The required rates of return are market determined and is reflected in the market price of each security. An investor, before investing in a security, evaluates the risk-return profile of an investment and assigns a risk premium to the security. This risk premium and expected return of an investor is incorporated in the market price of the security. Thus the market price of a security is a function of the return expected by the investors.
For Commerce Optional :- Join 🔜@commerceoptional
Significance of Cost of Capital
The basic objective of financial management is to maximize the wealth of the shareholders or the value of the firm. The value of a firm is inversely related to the cost of capital of the firm. So in order to maximize the value of a firm, the overall cost of capital of the firm should be minimized.
The cost of capital is of utmost importance in capital structure planning and in capital budgeting decisions.
* In capital structure planning a company strives to achieve the optimal capital structure in order to maximize the value of the firm. The optimal capital structure occurs at a point where the overall cost of capital is minimum.
* Since overall cost of capital is the minimum rate of return required by the investors, this rate is used as the discount rate or the cut-off rate for evaluating the capital budgeting proposals.