Importance and Use of Weighted Average Cost of Capital (WACC)
A company is raising funds from different sources of finance and doing business with those funds. The company has a responsibility to give a… Read Article
Market vs. Book Value WACC
Weighted Average Cost of Capital (WACC) is defined as the weighted average of the cost of each component of capital (equity, debt, preference shares,… Read Article
Evaluating New Projects with Weighted Average Cost of Capital (WACC)
The weighted average cost of capital is a weighted average of the cost of equity, debt, and preference shares. And the weights are the percentage… Read Article
Cash Ratio
What is a Cash Ratio?The cash ratio, also known as the absolute cash ratio, is one of the stringent liquidity ratios. It defines the… Read Article
Lease Finance vs. Installment Sale
There are various options available in a business to finance its assets. It may be an operating lease, financial lease, installment sale, and a… Read Article
Hire Purchase Agreement / Contract
A hire purchase agreement or contract is an agreement of purchase where the goods or assets are let out on hire by the seller/finance… Read Article
Difference between Hire Purchase vs. Term Loan
Hire purchase is a type of contract of purchase in which the seller/financier rents the asset for an agreed period of time in return… Read Article
Lease Finance vs. Term Loan
A lease is defined as a contract under which one party, i.e., the owner of the asset, hereby called The LESSOR, provides the asset… Read Article
Difference between Hire Purchase vs. Installment Purchase System
Both hire purchase and installment sale are popular methods of financing goods. These methods are different in terms of their option to purchase, a… Read Article
Hire Purchase
Hire Purchase is one of the most commonly used modes of financing for acquiring various assets. It aids by spreading the huge cost of… Read Article
Objectives of Working Capital Management
The primary objective of working capital management is to ensure a smooth operating cycle of the business. The secondary objectives are to optimize the… Read Article