Adjusted present value (APV)
Adjusted present value (APV) Adjusted present value (APV), defined as the net present value of a project if financed solely
Continue readingAdjusted present value (APV) Adjusted present value (APV), defined as the net present value of a project if financed solely
Continue readingFree cash flow (FCF) or free cash flow to firm (FCFF) Free cash flow (FCF) or free cash flow to
Continue readingWeighted average cost of capital (WACC) Weighted average cost of capital (WACC) is a calculation of a firm’s cost of capital in which
Continue readingCapital Asset Pricing Model (CAPM) The capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of
Continue readingCost of redeemable debt Redeemable debts are those which will be repaid to the debt investors after a specific period,
Continue readingCost of irredeemable debt Irredeemable debt is debt that has no specific redemption date or maturity period. The issuing authority
Continue readingWhat is Cost of Equity? The cost of equity is the return ( rate of return) a company pays to its equity
Continue readingWhat is Capital Rationing? Capital rationing is restricted on the amount of new investments or projects undertaken by a company.There
Continue readingWhat is Value at risk Value at Risk (VaR) is a measure of the risk of investments. It estimates how
Continue readingOption Pricing Theory The most used models are the Black-Scholes model and the binomial model. Both theories on options pricing
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