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 […]Continue Reading... No Comments.
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 […]Continue Reading... No Comments.