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Tag Archives | Financial Management

Factors Determining Capital Structure

Capital Structure of a firm has significant impact on aspects like return to shareholders, Cost of Capital and value of a firm, many factors are required to be taken into consideration while framing the Capital Structure of a firm. These are known as the determinants of Capital Structure. Generally the capital structure is determined taking […]

Credit Rating

Credit Rating is an assessment in terms of alphanumeric symbols to convey the creditworthiness of an individual, company financial instruments or a country. It is a simple and easily understood tool enabling the investor or lender the relative degree of risk associated with a loan amount on a debt instrument or a financial obligation. Credit […]

Types of Cost of Capital

Learn about types of cost of capital: 1. Opportunity Cost of Capital 2. Explicit and Implicit Cost of Capital 3. Specific and Overall Cost of Capital 4. Marginal Cost of Capital. 1. Opportunity cost of capital is the rate of return foregone on the next best alternative investment opportunity. 2.  Explicit cost of capital to […]

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