Weighted Average Cost of capital (WACC) is a capital that the company raises from various sources which include raising money through listing the company shares on the stock exchange (Equity), preferred stock, or by interest-paying bond or taking commercial loans (debt). The cost of each type of capital is weighted by its percentage of total …
The Dividend Discount model (DDM) is a method of valuing a company’s stock price based on the assumption that the company estimate the current fair price of a stock equals the sum of all of the company future dividends discounted based on present value. The market value of a company shares are discounted projected dividends …
Bonds are a form of long term debt contract when a bond coupon rate is equal to the market interest rate, the par value rate purchase by investors i.e. the bond issuers has to pay to the investors its face value of the amount has to pay back to the investors at the end of …