Tag Archives: Preferred Stock

  • Cost of Capital

    Posted on October 21, 2011 by admin in Corporate Finance.

    Discounted method is used to calculate the present value of any future cash flows. The cost of capital at which the company borrows money determines the discount rate of return to calculate the discounted value of any cash flow. The discount rate used is equal to the working average cost of capital (WACC) or the […]

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  • Preferred stocks

    Posted on September 2, 2011 by admin in Capital Market.

    Preferred stocks or the preference shares are special stocks that have both the properties of debt and equity. They are issued to the preferred shareholders with the fixed dividend payout condition for the whole tenure of the stocks. It has the following characteristics Preferred stocks are considered same as the debt as it has some […]

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