Cost of Capital and Performance(Relationship Study of Indian Company)

Finance is the lifeblood of the business. It is well known that finance is required besides the requirement of fixed and working capital for undertaking the program of extension, reorganization or expansion. Now a day market is open and finance are raising through issue of shares, debenture/bond from domestic as well as international capital market in the form of GDR ADR and FCCB and from the wide range of financial institutions. But, the finance is not free of cost. The suppliers of various sources of funds have a charge on the income of organization and this charge on each source capital is known as cost of capital. The present study focused on whether cost of capital has any relationship with financial performance of companies like capital structure.