Steps of Capital Budgeting
Capital Budgeting may be defined as the decision making the process by which a firm evaluates the purchase of major fixed assets including – building,…
Business
Weighted Marginal Cost of Capital
Weighted Marginal Cost of Capital The marginal cost of capital is the weighted average cost of new capital calculated by using the marginal weights. The…
How to estimate the Cost of Equity Capital?
Estimate the Cost of Equity Capital – The cost of capital or required rate for return a firm can be defined as the composite cost…
Difference between Book Value and Market Value
Book value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other hand,…
Cost of Preferred Stock
Cost of Preferred Stock Preferred stock is an equity security with properties of both equity and a debt instrument. Cost of preferred stock is the…
Flotation Cost
A flotation cost is one of the costs of raising capital which a business might incur. It is most commonly associated with issuing equity securities…
Retain Earnings
Retained earnings refer to the portion of net income (or loss) that is retained by a company rather than distributed to its owners as dividends.…
Comprehensive Differentiate between WACC and MCC
Comprehensive Differentiate between WACC and MCC – The weighted average cost of capital – The weighted average cost of capital (WACC) is the rate that…
Equity financing does not have any cost – Explanation
‘Equity financing does not have any cost’ – Equity financing is the procedure of raising capital through the sale of shares in an enterprise. It…
Existence and growth of a firm depends on its working capital – Explain
Existence and growth of a firm depends on its working capital – Working capital is the amount of a company’s current assets minus the number…
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