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The cost of capital is a term used in the field of financial investment to refer to the cost of a company’s funds (both debt and equity). Equity is ... more

The dividend discount model is a method of valuing a company’s stock price based on the theory that its stock is worth the sum of all of its future ... more

In corporate finance, Hamada’s equation, is used to separate the financial risk of a levered firm from its business risk. Hamada’s equation relates the ... more

Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ... more

In finance, leverage is a general term for any technique to multiply gains and losses. Most often it involves buying more of an asset by using borrowed ... more

Tier 1 capital is the core measure of a bank’s financial strength from a regulator’s point of view. It is composed of core capital, which ... more

In finance, the capital asset pricing model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be ... more

Tier 2 capital, or supplementary capital, include a number of important and legitimate constituents of a bank’s capital base. (Undisclosed Reserves ... more

In finance, the capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an ... more

Total Shareholder Return (TSR) (or simply Total Return) is a measure of the performance of different companies’ stocks and shares ... more