## Models for Calculating Cost of Equity

The cost of equity can be defined as the required rate of return an investor would expect against supplying capital. The Expected rate of… Read Article

The cost of equity can be defined as the required rate of return an investor would expect against supplying capital. The Expected rate of… Read Article

The cost of debt is the interest cost that a firm would have to pay for borrowed capital. The interest cost at which the… Read Article

WACC is the minimum rate of return required to create value for the firm. Investors of equity, debt, preference shares, etc have sufficient reason… Read Article

“Why net present value (NPV) is the best measure for investment appraisal?” This question is as good as another question – “How NPV is… Read Article

Capital rationing is a technique of selecting the projects that maximize the firm’s value when the capital infusion is restricted. Two types of capital… Read Article

Profitability Index (PI) is a capital budgeting technique to evaluate investment projects for their viability or profitability. Discounted cash flow technique is used in… Read Article

The payback period is an investment appraisal technique that tells the amount of time taken by the investment to recover the initial investment or… Read Article

Modified internal rate of return is a solution to the shortcomings of internal rate of return as a project evaluation technique. There are two… Read Article

The advantages and disadvantages of the internal rate of return are important to understand before applying this technique to specific projects. There must be… Read Article

Internal Rate of Return (IRR is a prominent technique for the evaluation of big projects and investment proposals widely used by management of the… Read Article

Hurdle rate, the opportunity cost of capital and discounting rate are all same. It is that rate of return that can be earned from… Read Article

What is Net Present Value (NPV) and Risk?Net present value (NPV) and the risk have a strong relationship with each other. With an inappropriate… Read Article