The different types of Leases
A “lease” is defined as a contract between a lessor and a lessee for the hire of a specific asset for a specific period of…
Finance
Advantages and Disadvantages of Lease
Leasing is becoming a preferred solution to resolve fixed asset requirements vs, purchasing the asset. While evaluating this investment, it is essential for the owner…
Difference between Operating Lease and Long Term Lease
The difference between operating lease and long-term lease are: Operating Lease Definition: A lease in which all risks and rewards related to asset ownership remain…
What is sale and leaseback financing?
Sale-leaseback financing is a form of financing in which a company sells its real estate for cash and simultaneously signs a long-term lease with the…
Define Cost of Capital
Cost of Capital introduces to the opportunity cost of making a particular investment. It is the rate of return that could have been gained by putting the same…
What are the components of CAPM equation?
The capital asset pricing model (CAPM) provides a formula that calculates the expected return on a security based on its level of risk. The formula…
Explain Dividend Growth Model
Equity valuation is a subject of great depth and complexity. Valuation entails understanding a business; forecasting its performance, selecting the appropriate valuation model; converting such…
Define Weighted Average Cost Of Capital (WACC)
Weighted Average Cost Of Capital (WACC) refers to the cost of capital which is calculated by multiplying the cost of specific sources and the weight…
What is Capital Budgeting?
Capital Budgeting is a step by step process that businesses use to determine the merits of an investment project. The decision of whether to accept…
Explain the significance of Capital Budgeting
The significance of Capital Budgeting Capital budgeting is also vital to a business because it creates a structured step by step process that enables a…
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