Ask Question
25 October, 08:29

After another year, Biwei's business is in rapid expansion. He wants to raise $1M new capital. He can finance by taking a loan or issuing stock shares. The market interest rate for a loan is 5%. For an angel investor, injecting $1M into Biwei's business will dilute 50% of Biwei's ownership. What is the capital cost of Biwei's business expansion?

+2
Answers (1)
  1. 25 October, 10:57
    0
    Answer:The capital cost is $1 million

    Explanation: This is one time expenses on production if goods and services, purchase of land and construction. It is the total cost required to bring a business to a commercially operable status.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “After another year, Biwei's business is in rapid expansion. He wants to raise $1M new capital. He can finance by taking a loan or issuing ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers