Rekha Limited (B)

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Abstract

The accountant of Rekha Limited, a large Indian company, suggests certain changes in capital budgeting. He proposes the use of discounted payback period as a measure of investment worth and as a procedure for estimating the cost of capital the company should use as a discount rate for accepting project proposals. It provides an opportunity to discuss the effect of capital structure on cost of capital.

Additional Information

Product Type Case
Reference No. F&A0122(B)
Title Rekha Limited (B)
Pages 7
Published on Jan 1, 1970
Year of Event 1964
Authors Varshneya, K L;
Area Finance and Accounting (F&A)
Discipline Accounting, Finance
Sector Manufacturing
Country India

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