Marshall Hargrave is a stock analyst and writer with 10+ years of experience covering stocks and markets, as well as analyzing and valuing companies. David Kindness is a Certified Public Accountant ...

Weighted average is a powerful tool for an investor. It can be used to evaluate the performance of a portfolio. It can help us better understand how the broader market moves. Even more important, it ...

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 ...

Your company needs funding to grow, and this funding is known as capital. Your company can generate capital internally through profits which, when reinvested, become retained earnings. When your ...

Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.

If you own a small business, you might decide to invest some of the company's money in securities and mutual funds. You need to figure your capital gain or loss when you sell such investments. The ...

This paper demonstrates that most finance textbooks may incorrectly define a project's cash flow and the cost of capital. These two mistakes precisely cancel each other in the case of a perpetuity and ...

Analysts use the return on invested capital (ROIC) metric to evaluate a company's capital allocation decisions. In particular, it's common to use ROIC in comparison with a company's weighted average ...