In capital budgeting decisions there are certain variables present in the business industry that ought to be taken into account to ensure that the appropriate figures are utilized in the capital expenditure appraisal. In capital budgeting, the principle of the time value of money arises, which basically states that $1 today is much more worth than $1 next year. This is due to four key […]

The effects of inflation are often displayed as deleterious and undesirable not only to the economy but also to the investing public in general. Private capital formation is derailed as a result of the financial market frictions that are exacerbated by high rates of inflation. Economists also argue that high variations in rates of return to capital are witnessed during times of inflation. Contentious studies […]

The determinants of Venture Capital Funding: Performance of US Venture Capital Firms against European VCs Problem Statement: Over the last decade, many researchers have praised the influence of Venture Capital (VC) as a key driver of entrepreneurism, start-ups, innovation and economic growth (Da Rin et al., 2006; Cumming, 2014). VC has long been studied and observed in the United States, it is for these positive […]

1. Introduction The concept of capital market efficiency can be said to be a research topic that has bring a lot of arguments and suggestions on the field of finance as a course of study. As such, it would only be expected that the wider implications of market efficiency would also be just as far-reaching. Therefore, the justifications for this research undertaking may be considered […]

The Indian capital market has changed dramatically over the last few years, especially since 1990. Changes have also been taking place in government regulations and technology. The expectations of the investors are also changing. The only inherent feature of the capital market, which has not changed is the ‘risk’ involved in investing incorporate securities. Managing the risk is emerging as an important function of both […]

Tesla Motors Inc. reported its first quarterly net profit in more than three years on Wednesday, buoyed by nearly $139 million in sales of clean car credits, and Chief Executive Elon Musk said the company could turn a profit again in the fourth quarter. The electric carmaker also signaled it has substantially reduced the costs for launching production of its high volume Model 3 sedan […]

That is ownership claims (or the right to any and all residual asset value after all prior claims are met) and prior ranking claims known as debt. Equity is typically a form of permanent capital in the capital framework of a company while debt is typically nonperformance with a variety of forms. This course focuses on Dept with special emphasis on the Debt Capital Markets. […]

Meriwether was the former vice-chairman and head of bond trading at Investment bank Salomon Brothers. Meriwether put together a high profile team of traders and academics in an attempt to create a fund that would profit from the combination of the academics’ quantitative models and the traders’ market judgment. Some of the high profile employees brought on were Nobel-prize winning economists Myron Schools and Robert […]

11308911    Finance – Cost of Capital for Starbucks Coffee 1) Cost of Capital Section Calculate the cost of capital (show calculations) for Starbucks using the following: a)      Weighted average cost of capital; b)      Capital-asset pricing model (beta).  Weighted average cost of capital Cost of equity: Re = Rf + Beta (Rm-Rf). Where: Rf= risk free rate Rm-Rf =equity risk premium Using the latest date from […]

Abstract This paper provides information on specific ideas embedded in single index model/construction of optimal portfolios compared to the classic Markowitz model. Important arguments are presented regarding the validity of these two models. The researcher utilises SPSS analysis to demonstrate important research findings. This type of analysis is conducted to explore the presence of any significant statistical difference between the variance of the single index […]