Cost of Retained Earning Retained earnings are profit reserves held by companies that are not distributed as dividends. These are preserved to fund a firm’s longterm and short-term activities. It…

What is Cost of Equity? When we talk about the term cost of capital, it is usually quite vague as capital could be raised from various types of sources such…

What is Cost of Capital? No discussion on capital budgeting is complete without a thorough discussion on the cost of capital. In simplest terms, the cost of capital is defined…

Planning and Designing Capital Structure The choice of the combination of different sources of finance is known as the capital structure mix. Capital structure deals with the judicious use of…

What is Capital Structure? Financial management aims at maximising the wealth of shareholders. All financial choices in any company should be made keeping this goal in mind. When a corporation…

What is Leverages? The term leverage refers to a person’s ability to exert influence or authority. The influence of one financial variable on another related financial variable is referred to…

Long-Term Sources of Finance The long-term sources of finance fulfil the financial requirements of a business entity for the time periods exceeding five years and can be in the form…

Medium Term Sources of Finance Medium-term sources are the sources where the funds are required for a period of more than one year but less than five years. The sources…

Sources of Short-Term Finance Short-term finance is the money that is borrowed for a short period of time, usually less than a year. Short-term financing is used by a business…

What is Business Finance? Business finance refers to the discipline that deals with the management of money and financial resources within a business or organization. It involves making decisions related…