Is Capital Essential For Your Business? We must understand the importance of raising as much capital for our business as our resources allow us. It helps in making worthwhile investments and putting our venture on strategically planned objectives. This can be done for the sake of present and the future endeavors since “capital” is the … Read more

Introduction The current ratio is depicted as another important aspect of ‘Liquidity Ratio’ and ‘Working Capital’ as it marks out the correct proportion of current assets that are available in the business setup in according with the current liabilities. It should be in our best interest that current ratio is quite essential, especially for the … Read more

Introduction Considering it imperative, the word “finance” represents the two relatable activities spiraling up the business world. It includes an elaboration on the money dynamics, which emphasizes on its management and the other one caters to the right methods of acquiring the required funds for a company. It should be in our best interest that … Read more

Return on Capital Employed? Explained Here: The accounting world elaborates “ROCE” abbreviated as “Return on Capital Employed” as a financial ratio measuring incorporation’s profitability and its level of efficiency through which incorporation has used its capital for the on-going operations. This is considered imperative as ‘Return on Capital Employed’ demonstrates the most unique aspects of the business including sum … Read more

What is Cost of Capital: The Weighted Average Cost of Capital is a measurement of a company’s overall cost of capital, which includes the most important categories of the equity to weigh them through a specific equation. This statistical logic has helped numerous businesses worldwide and is considered as the most legitimate act of calculating … Read more

Introduction: The ‘Market Risk Premium’ is considered as an excess return over the stocks purchased by the individuals or the whole market that are associated with risk-free rate. Considering this as compensation, such aspect is being practiced in stock-exchange a market which helps business tycoons and investors in making the right decision to avoid high … Read more

Introduction: The cost of debt is considered as a specific amount of rate which a company must pay on its overall debt amount. It should be in our best interest that ‘cost of debt’ is analyzed either before tax or after tax return since some companies might as well deduct the interest expense and then … Read more

The retained earnings are considered as a specific portion of net income or net loss that is absorbed by an organization instead of disbursing them to its shareholders in the form of ‘dividends’. It should be in our best interest that finance experts assume ‘retained earning’ as an opportunity cost, as it might evoke new … Read more

Introduction: The cost of preferred stock is something that every business represents in the world as per their directions. It is considered an equity security that defines the characteristics of both equity as well as debt. Considering the ‘cost of preferred stocks’ as a hybrid instrument, it is possible that such elements do not portray … Read more

What’s Cost of Capital? The cost of capital refers to the required amount of return which a company expects in order to accommodate the upcoming capital budgeting project. It includes building new and improved factories and industries as per the funds availability in the organization. In the accountancy world, the cost of capital is taken … Read more

Introduction: The expected rate of return is considered as the most powerful solution for finding some useful probabilities to evaluate numerous return outcomes that our investments may provide afterward. It should be in our best interest that probabilities are highly dependent upon the investor and the kind of investment made in the markets. It follows … Read more

Introduction: Discount Rate is the most common variable studied in the field of accountancy/business, as it encapsulates an interest rate marked over commercial banks and other financial institutions for the amount received on the behalf of Federal Reserve’s discount opening. It’s the same rate, which finance professionals use while generating ‘discounted cash flow’ and it’s … Read more