4 Steps of capital Budgeting Process

 The cost of capital has 4 sources. They are discussed below:
Common Stock:
     The cost of common stock is the return, required on the stock by investors in the market price. Ordinary shareholders are entities to dividends after the income claims of other supplier of capital have been met. Thus they have residual ownership claim.

Preferred Stock:
     It represents a special type of ownership interest in the firm. It gives preferred stockholders the right to receive their stated dividends before any earnings can be distributed to common stockholders, because preferred stock is a form of ownership. The proceeds from its sale are expected to be held for an initiate period of time.

Management By Walking Around (MBWA)

Management by walking around is all about learning from every situation and manage it accordingly. The MBWA method is a management concept that it is part of a business model for cultural change within the enterprise that has proven successful in a lot of businesses.

The original concept was created by David Packward (September 7, 1912- march26, 1996)