The EBIT-EPS approach to capital structure is a tool businesses use to determine the best ratio of debt and equity that should be used to finance the business' assets and operations. At its core, the ...

Learn how weighted average cost of capital (WACC) helps gauge investment quality, evaluate company value, and guide smarter financial decisions.

To understand how the weighted average can achieve all these things, let's start with the nuts and bolts of the calculation. If only a few of the largest companies in the index have a lousy day, while ...

Cost of capital is a term that investors and companies use to express how much it costs a firm to obtain funding for projects. This rate is used as a benchmark to evaluate potential investment ...

The cost of equity and the cost of capital are key metrics in corporate finance that influence financial strategy and investment decisions. The cost of equity reflects the return shareholders expect, ...

Learn how financial leverage influences EBIT breakeven, affecting profitability. Adjust your strategy for improved earnings and stability in your corporate finances.

Net Working Capital (NWC) stands as a critical metric for assessing a company’s short-term financial health. It reflects the company’s ability to cover short-term liabilities with its short-term ...

Instead of C-M-C, the formula for the circulation of commodities, the formula for the transformation of money into capital is M-C-M. “The simple circulation of commodities – selling in order to buy,” ...