As we know that a company can raise funds via different sources, such as debt, common stock, and preference shares. Each of these different… Read Article
Interest tax shields refer to the reduction in the tax liability due to the interest expenses. Companies pay taxes on the income they generate.… Read Article
Default risk premium or (DRP) represents the extra return that the borrower must pay the lender for assuming the extra or default risk. It… Read Article
What is a Capital Budgeting Decision?Capital budgeting decision is the process by which companies make decisions pertaining to fund allocation for huge investment decisions.… Read Article
There are advantages and disadvantages of the weighted average cost of capital (WACC) which are discussed in detail in the post coming ahead. The… Read Article