## Opportunity Cost of Capital – Concept, Example, and Consideration

A financial cost of capital, in simple words, is the average cost of financing the current projects. And this cost of capital is always… Read Article

## Types of Interest Rates

Interest Rates: MeaningThe Rate at which the investors receive their returns on investment or the rate at which borrowers are to pay for their… Read Article

## Hamada Equation-Meaning, Example and More

Hamada equation distinguishes the financial risk from the business risk of a levered firm. A levered firm’s capital structure consists of both equity and… Read Article

## 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

## Financial Structure – Meaning, Importance and More

The Financial structure is how a company finances its assets and operations. Or, we can say it is the mix of debt and equities… Read Article

## Capital Structure Decisions – Importance, Factors, Tips and More

Capital Structure, as the name suggests, means arranging capital from various sources in order to meet the need for long-term funds for the business.… 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

## Flotation Cost

What is Flotation Cost in Finance?Flotation cost is the fee charged by an investment banker for its assistance in raising new capital. This cost… 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