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 »
The Cash Conversion Cycle is Vital to Business Success The Cash Conversion Cycle tells a decision maker how long his business may be without the cash that has been used to fund a purchase. It is all about liquidity and that is essential for every business because ‘cash is king.’When the annual budget and forecast… 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.
What is Time Value of Money? Time Value of Money – A Crucial Concept Time value of money is the name which we all hear every now and then in almost all the fields. No matter you talk about investing your money somewhere, saving your money at home, initiating new projects or buying and selling… Read More »
Conventional Cash Flows In Conventional cash flows, cash outflow occurs only once at the start of the project. Example of Conventional Cash Flows: For example, when we take loan from banks, we withdraw whole amount from the account once and pay back to bank in installments till we pay off full principle amount plus any… Read More »
Multiple IRR In real life, you would find many projects that have more cash outflows in addition to initial cash outflow. In such cases there may be more than one discount rate that can result in Zero NPV of those projects and there may also be a case where there is no discount rate that will result in zero… Read More »
Is There Any Harm In Using Credit Cards? Credit cards are becoming one of the most widely used payment tool in not only developed countries but in developing economics as well. People are well aware of the advantages of using credit cards but here I want to through light on few precautionary measures that credit card holders… Read More »
Do You Really Need A Credit Card? The answer is YES if you want to feel safe without cash you hate to keep bulk cash amount in your wallet you want to pay online subscription fee of your favorite tech magazine you want to enroll for some online course you want to pay examination fee for… Read More »
Credit Information How and where you can get information about the credit worthiness of your customers? Proper credit and inventory management can have a significant impact on the profitability of any business and value investors place on it. If you are looking for credit history of their customers, there are number of options available to… Read More »