The cost of capital
There are two good reasons for knowing the exact cost of each of the various financing options. The first is so that you can choose between them. The second is that that you know overall the rate or return you need to beat (the hurdle rate) in order for any project to be successful – I will come back to this in the next chapter.
‘Although many of the proposals are consistent with standards issued in Canada and the United States during 2001, the IASB has drawn on requirements in other jurisdictions when it believed a higher quality solution existed. This project is a good example of how convergence can and should work – for instance, the [US Financial Accounting Standards Board] has agreed to reconsider its own standards ...’. ...
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