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
Cost of Capital
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
Pecking Order Theory
Pecking order theory is a theory related to capital structure. Donaldson initially suggested it. In 1984, Myers and Majluf modified the theory and made… Read Article
Factors affecting Capital Structure Decisions
Capital Structure in GeneralEvery company needs capital to support its operations. Capital structure is a blend of various sources of finance. To be more… Read Article
Modigliani- Miller Theory on Dividend Policy
Modigliani-Miller’s theory is a major proponent of the ‘dividend irrelevance’ notion. According to this concept, investors do not pay any importance to the dividend… Read Article
Gordon’s Theory on Dividend Policy
Gordon’s theory on dividend policy is one of the dividend theories believing in the ‘relevance of dividends’ concept. It is also called the ‘Bird-in-the-hand’… Read Article
Walter's Theory on Dividend Policy
Walter’s model on dividend policy believes in the relevance concept of a dividend. According to this concept, a dividend decision of the company affects… Read Article
Net Income (NI) vs. Net Operating Income (NOI) Approach
The difference between the net income and operating income approach of capital structure is mainly due to the role of capital structure, the cost… Read Article
Project or Divisional Weighted Average Cost of Capital (WACC)
Meaning of Divisional or Project Weighted Average Cost of CapitalDivisional or Project Weighted Average Cost of Capital (WACC) is the hurdle rate or discount… Read Article
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