... to cost of capital, it is determined by cost of equity and cost of debt. The cost of equity is some return rate which Fiat group has to offer to a shareholder in order to receive capital. With regards to cost of debt, in case of Fiat it will be cost of getting varied loans or leasing to finance their operations. Fiat group operate in a few industries like I mentioned in the beginning. These industries are automobile and engines manufacturing. Extending businesses by new industries creates huge opportunities like economies of scope and economies of scale. The competition techniques are different depending on brand. As far as Fiat is concerned it is rather mass product so these techniques are not so high flights. However, with regard to Ferrari and Masserati these techniques are at top level (high outlays on marketing and promotion) which succeed. Moreover these two luxuries brands ...

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