BusinessHow 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…
BusinessDifference 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,…
BusinessCost 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…
BusinessFlotation 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…
BusinessRetain 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.…
BusinessComprehensive 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…
BusinessEquity 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…
BusinessExistence 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…
BusinessComponents of Cost of Capital The cost of capital or required rate for return a firm can be defined as the composite cost of the firm’s financing components. The cost…
BusinessImportance and Necessity of Cost of Capital Cost of capital: The cost of capital or required rate for return a firm can be defined as the composite cost of the firm’s financing…