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
Discount Rate
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
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
Bond Valuation
Bonds are long-term debt securities issued by companies or government entities to raise debt finance. Investors who invest in bonds receive periodic interest payments,… 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
Present and Future Value
The value of money can be expressed as the present value (discounted) or future value (compounded). These both are the concepts of the time… Read Article
Time Value of Money
Meaning of Time Value of MoneyThe term ‘Time Value of Money (TVM)’ implies that there is a connection between ‘time’ and ‘value of money.’… Read Article