The specific mixture of long-term debt and equity that a firm chooses to use is commonly referred to as the firm’s capital structure. The capital structure represents the combination of different sources of funding, including debt and equity, that a company utilizes to finance its operations and investments. It is a strategic decision made by… Read More »
What is the Cost of Capital? Corporations and investors need to interact in a market because investors are the ones that provide the capital so that the corporations can invest and produce the goods and services How do investors think about other investments? How they evaluate investments in terms of returns? How they evaluate investments in terms of… Read More »
Weighted Average Cost of Capital Weighted average cost of capital Weighted average cost of capital (WACC) means to the average amount of minimum rate of return after paying the tax that a company must bring home for its all security holders including debt holders, common stockholders, and preferred stock holders. How to Calculate WACC? The… Read More »
International Markets: Market Entry Strategies: Franchising: Franchising is an easier mode of foreign market entry as it only requires the franchise to transfer knowhow and allow the franchisee use of its business model along with its name and logo. Franchise does not need to divulge his secrets as is the case in licensing agreement. There… Read More »
Weighted Average Cost of Capital Definition and Formula The Weighted Average Cost of Capital is the calculation of the return a business has to pay per every penny being financed. Weighted Average Cost of capital takes into account the average of all the sources of finance being used by the business for the investment, it… Read More »
Components of Cost of Capital Cost of Capital Definition The cost of capital is the minimum return rate required by the business to be earned in order to meet the expectations of its investors. Businesses to progress well and move with the industry need to undertake new investments, new opportunities, and new projects. However, these… Read More »
Capital Structure Definition and Capital Structure Theories How is the Corporation Financed? Capital structure is a terminology used in the terms of business to indicate the way a business has been financed.
Bad Credit History Do you know that a Bad Credit History can hurt your business badly? Bad credit report is a red signal to the businesses that they are exposed to possible bankruptcy. So, here we are going to discuss in detail about what Credit Report is and why is it important for firms to keep… Read More »
Credit Risk and Credit Rating Credit Risk In today’s challenging business environment, it is very crucial for financial institutions to do risk assessment. Therefore, it is very important to know exactly what Credit Risk is and why it is important to ascertain it.
Capital Structure What Is Capital Structure? When you are asking about what the capital structure is and what it relates to what you will find is that it is regarding the debt and equity within a business environment. It is the amount of debt and equity that mixes together to give the amount of return… Read More »