Capitalisation Concept
by Capitalization is an accounting method in which a cost is included in the value of …
Category: Management Notes
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Cost of Capital
Cost of capital is the required return necessary to make a capital budgeting project, such …
EBIT-EPS analysis for Capital Structure decision
EBIT-EPS analysis gives a scientific basis for comparison among various financial plans and shows ways …
Factors influencing Capital Structure
Size of Company: Small companies may have to rely on the founder’s money but as …
Internal Rate of Return
The IRR is used when the cost of the investment and the annual cash flows …
Introduction to Capital Structure Theories
Capital Structure means a combination of all long-term sources of finance. It includes Equity Share …
Net Present Value
Net present value (NPV) is a discounted technique, which considers the time value of money. …
Optimum Capital Structure
An optimum capital structure has such a proportion of debt and equity which will maximise …
Over Capitalisation Causes and Remedies
Overcapitalization occurs when a company has issued more in debt and equity than its assets …
Payback Method
Payback method helps in revealing the payback period of an investment. Payback period (PBP) is …