Archive | Financial Management

Cost of Capital: Concept, Components, Importance, Example, Formula and Significance

Cost of capital is a composite cost of the individual sources of funds including equity shares, preference shares, debt and retained earnings. The overall cost of capital depends on the cost of each source and the proportion of each source used by the firm. It is also referred to as weighted average cost of capital. It can be examined from [...]

By |2019-04-24T06:31:49+05:30April 24, 2019|Cost of Capital|Comments Off on Cost of Capital: Concept, Components, Importance, Example, Formula and Significance

Long-Term Sources of Finance

Everything you need to know about the sources of getting long-term finance for a company, firm or business. Long-term financing is a mode of financing that is offered for more than one year. It is required by an organization during the establishment, expansion, technological innovation, and research and development. In addition, long-term financing is required to finance long-term investment projects. [...]

By |2019-04-23T10:41:31+05:30April 23, 2019|Sources of Finance|Comments Off on Long-Term Sources of Finance

Short Term Sources of Finance

Everything you need to know about the short-term sources of finance. Short-term financing is aimed to meet the demand of current assets and pay the current liabilities of the organization. In other words, it helps in minimizing the gap between current assets and current liabilities. There are different means to raise capital from the market for small duration. Various agencies, [...]

By |2019-04-23T10:38:35+05:30April 23, 2019|Sources of Finance|Comments Off on Short Term Sources of Finance
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