ABSTRACT
The origins of increasing capital lie in the need to obtain funds to finance growth. In order for shareholders to subscribe to such an operation, it necessary that the return on their investment is sufficiently attractive; and from the company’s viewpoint, that the expected return of their investment must be higher than the cost of capital. Once capital is increased, the company has gained a stable and certain monetary value and is no longer exposed to series of uncertain monetary flows. In order to evaluate such an investment, financial tools are required for good decision making. Among these, two of the most popular are the net present value and the interest rate of return.
