FAQs tagged as

Capital Budgeting

  1. Which is more important when estimating cost of capital - debt or equity?

  2. What is the formula for calculating net present value (NPV)?

  3. What are the different ways that corporations can raise capital?

  4. What is the difference between cost of debt capital and cost of equity?

  5. How does a company choose between debt and equity in its capital structure?

  6. How do you use net present value to calculate a capital budget?

  7. What is the formula for calculating the capital asset pricing model (CAPM)?

  8. What is the difference between financial capital and economic capital?

  9. How do interest rates influence a corporation's capital structure?

  10. How do you find the level of EBIT where EPS doesn't change?

  11. What is the formula for calculating weighted average cost of capital (WACC) in Excel?

  12. How do analysts and investors interpret Economic Value Added?

  13. How do I use the CAPM (capital asset pricing model) to determine the cost of equity?

  14. How do I calculate the cost of equity using Excel?

  15. How do you calculate the proper weights of different costs of capital?

  16. Why is it that under some circumstances, capital expenditure cannot be tax-deducted ...

  17. Which types of industries have the largest capital expenditures?

  18. How do you calculate costs of capital when budgeting new projects?

  19. What is the difference between CAPEX and OPEX?

  20. How do you use the profitability index rule when scoping out a project?

  21. What is the difference between the cost of capital and required return?

  22. What is the difference between cost of equity and cost of capital?

  23. What does a high weighted average cost of capital (WACC) signify?

  24. What is the difference between the current ratio and the acid test ratio?

  25. What are the different ways a CEO could influence stock prices?

  26. How do capital expenditures affect (CAPEX) the valuation of a company?

  27. How do you calculate working capital?

  28. How do changes in working capital affect a company's cash flow?

  29. What are the disadvantages of using net present value as an investment criterion?

  30. What's the difference between net present value and internal rate of return? How ...

  31. How does the required rate of return affect the price of a stock, in terms of the ...

  32. What do people mean when they say debt is a relatively cheaper form of finance than ...

  33. Which is a better measure for capital budgeting, IRR or NPV?

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