Tax Shield – Meaning, Importance, Calculation and More
What is Tax Shield?A Tax Shield is the use of taxable expense that helps a business to lower its tax liability. Or, we can… Read Article
Capital Budgeting
Discount Rate – Meaning, Importance And More
A discount rate is a crucial concept in finance and could mean two things. The first is about the interest rate that the central… Read Article
Marginal Cost of Capital – Meaning, Uses And More
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 – 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.… Read Article
Default Risk Premium – Meaning, Purpose And Calculation
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
Types of Cash Flow
Cash Flow and Cash Flow StatementsAs the name suggests, cash flow means the amount of cash flowing in and out of the company. To… Read Article
How can a Capital Budgeting Decision Go Wrong?
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
How to Calculate WACC?
How to calculate WACC is calculation is the computation of the cost of the overall capital of a business. The capital structure of a… Read Article
Advantages and Disadvantages of Weighted Average Cost of Capital (WACC)
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
Factors Affecting Cost of Capital
Cost of capital is the cost for a business but the return for an investor. There are various factors that can affect the cost… Read Article
Cost of Capital
MeaningWhat is the cost of capital? The cost of capital of an investor in financial management is equal to the return an investor can… Read Article