Capital Budgeting
Techniques of Capital Budgeting
Financial Management illustrations on techniques of Capital Budgeting – NPV, IRR, ARR, Profitability Index, Discounting Payback Period & MIRR
Financial Management illustrations on techniques of Capital Budgeting – NPV, IRR, ARR, Profitability Index, Discounting Payback Period & MIRR
Estimation of Cash Flow in Capital Budgeting problems with solutions 1. The cost of a machine is 10, 00,000. It has an estimated life of 10 years after which it would be disposed off (scrap value nil). Profit or Earning before depreciation and taxes (EBDT/PBDT) is estimated to be 2, Read more…
Cost of Capital formula & Solved Problems on Cost Of Equity, Debt, WACC – Financial Management notes on Cost of Capital, Cost of Debt, Equity and Preference Share, Weighted Average Cost of Capital Illustrations Kd Ke Kp Ko Cost of capital represents the return a company needs to achieve in order to justify the cost of a capital project, such as purchasing new equipment or constructing a new building. Cost of capital encompasses the cost of both equity and debt, weighted according to the company’s preferred or existing capital structure. This is known as the weighted average cost of capital (WACC).
Planning and Design of Capital Structure notes and numericals. Financial management study material – EBIT – EPS analysis, Financial Distress, Debt service coverage ratio, Interest coverage Ratio