How to Calculate Cost of Equity?

 There are many different sources of finance that businesses can use to fund their operations. The main types of finance that they may use include equity and debt. However, each type of finance may come with its costs for the business. Usually, equity is more expensive because it is long-term and, therefore, the business must

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Capital Rationing: Definition, Types, Example and More

 Companies have to make different decisions regarding their operations during their lifetime. Some of these decisions may relate to the projects that they should undertake, while some may relate to strategies and operations. Decisions regarding the projects and investments of a company fall under capital budgeting. Capital budgeting is the process of evaluating different projects

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What is Responsibility Accounting?

In every organization, it is the prime objective of high authorities to manage and control the costs. Businesses have many expenses, the incoming and outgoing of money is part of daily activities. To manage the cost of business the term “Responsibility Accounting” is used where specific people are made responsible for controlling expenditures and accounting

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Degree of Total Leverage (DTL): Definition, Formula, Example and Analysis

In this article, we cover the degree of total leverage. This includes the key definition, how to calculate the degree of total leverage as well as example and analysis. Before, jumping into detail, let’s understand some key relevant definitions. Definition Let’s understand some key definition of total leverage as well as the degree of total

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