Idle Cash – What It Is And How To Earn From This Cash?
Idle cash or idle money as the name implies is the cash that is sitting idle, means it is not earning any income. Such cash (also known as barren …
Investment Decisions
Equity Risk Premium
What is Equity Risk Premium? Investing in equity is not risk-free. The risk is not only associated with returns but the capital is also not guaranteed. So, to compensate …
REIT Or Real Estate Investment Trust: All You Need To Know
REIT or real estate investment trust is a type of investment vehicle that allows individuals to invest in real estate or related assets with an intention to earn income. …
Restricted Stock
Restricted stock refers to the shares, the sale or acquisition of which are subject to certain restrictions. The shareholder of restricted shares has to meet these restrictions before they …
Interest Tax Shields – Meaning, Importance And More
Interest tax shields refer to the reduction in the tax liability due to the interest expenses. Companies pay taxes on the income they generate. Interest expenses (via loan and …
Default Risk Premium – Meaning, Purpose And Calculation
Default risk premium or (DRP) represent the extra return that the borrower must pay the lender for assuming the extra or default risk. It is commonly used in the …
Types of Cash Flow
Cash Flow and Cash Flow Statements As the name suggests, cash flow means the amount of cash flowing in and out of the company. In order to keep a …
Importance of Capital Budgeting
Capital Budgeting Meaning Capital budgeting is a process that helps in planning the investment projects of an organization in long run. It takes all possible consideration into account so …
Investment Appraisal Techniques
Investment Appraisal Techniques Investment appraisal techniques are payback period, internal rate of return, net present value, accounting rate of return, and profitability index. They are primarily meant to appraise the …
Advantages and Disadvantages of CAPM
What is CAPM? As the name itself suggest the Capital Asset Pricing Model (CAPM) is used for pricing the security with a given risk. This model describes the relationship …
