Money Cost of Capital vs Cost of Capital

This is the difference between money cost of capital and cost of capital

That is why you need to get Money cost of capital rate minus Tax then only you will get cost of capital. This situation also applicable to interest rate or borrowing rate, but the meaning are not the same.

Usually Profit/Loss accounts are MONEY rate not REAL rate.

Money cost of capital is the amount of money rather than the proportional rate (cost of capital). Cost of capital is not REAL rate.

So the question from Revision class is Money Cost Of Capital, if we multiply with it we will get the REAL cash flows instead of discounted cash flows....see formulae below you will know what I mean.

FORMULAE to get REAL or MONEY rate :
1 + r = (1 + h)(1 + i)

Good Luck! If you have any question please post at the comment =)

(Source : Wikipedia)

Additional Reference
Google Book



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Very Cham.....PK jor

Hi everyone, as you know since we were young our parents taught us that if we spend too much we will become poor. Spending on the things that we need is what we should do. I bet you all do understand that when parents said we spend on things that we should like food, drinks, and other necessities.

But parents never allow us to buy TV games or any other VCD because it is not necessary and they tell us that those we do not need in studies. Besides it is wasting money... therefore end up pokai lor

At first I think like that then after today I received email asking me to buy so many original books.....i think now we can add a new factor THE TEXT BOOK PURCHASING. I AM SURE Your parents never NEVER NEVER tell you that buy text books will make you pokai!!

Now we have a scenario here :

Every semester we will be asked to buy ORIGINAL TEXT BOOKS, NOT ORIGINAL SURE CONFISTICATE!

Hey pity us la, we all study here because it's cheap, if we got money already run to Taylor....

One semester we spent about RM 60 per text book, if that semester we have 3 subjects then we spent RM 270 on it not to mention about exam kit too can go up to RM 450 jor lor.....The total already take your parents' 15+days salary, you already pokai......"gong xi"

Now tell me is it possible for me to pay little by little because I think that will help me DECREASE my pokai-ness

So you play us meh? First week already want me "gantung diri" second week how ar? Got more to come de leh after the first week, after that they want printing fee...

Tell me how?

Hey how come i didn't know study can make me pokai oso geh? continue like this my part-time job is become beggar lor.....because no more money to eat or everyday eat hot dog bun lor...not because i kena rompak by ILLEGAL robbers but kena rompak by LEGAL robbers, the lecturers....hisap darah, what to do? Just have to let them suck till my 5 litres of blood finished then i have to learn how to refill back! Walao, i tell you this is really better than go rob bank...

ps: this college really killing the poor directly if they do this to us ....if they really want to help why don't they take the money from our RM 100 donation and the money for construction go buy second hand books and lend to us like what the secondary school had done?

or the lecturers scare NO COMMISSIONS?! TELL US!!!!

Usually those texts used for 1 semester only then it is useless, because lecturers want to see ONLY ORIGINAL so we buy....... After the semester finish you want me take the text go in toilet use or go recycle? Because whichever way the end result is the same; WASTE MONEY!


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I feel like ...

Like....like a NEWSPAPER REPORTER!!!

You know we started this blog with the sole purpose to making class announcement and write up our very own college activities. But now we all started to tell others about us(daily life), and about some companies(internships) that we had worked in before!


Like what Ken had done, he writes about the Orange Internet Sdn Bhd, his part time job. He tell us about what is the company about, and the working environment all in very detail!
Ken's part-time-ship not internship!

Kean Hung shared his experience in Penang accounting company that he works for his internship.
Read about it here :
Kean Hung's internship

Last but not least Peik Teng, she writes about audit company in Jalan Ipoh.
Read about it here :
Peik Teng's Bad-Internship-Experience

I believe if we all keep this up we all will end up writing more companies reviews and tell potential employees the information they need to know before they walk in to work for that particular company; what i meant is that
DO YOU HAVE WHAT IT TAKES TO WORK IN THAT COMPANY?

So you tell me, are we not college student reporters in TARC? Stay tune for more hot juicy news!

I would be very happy to gather all information or experiences that you wished to share with the rest of the world. Of course particularly RIGHT NOW we are focus on Malaysia....

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