This article throws light upon the top four sources of finance. The sources are: 1. Cost of Debt 2. Cost of Preference Capital 3. Cost of Equity Share Capital 4. Cost of Retained Earnings. Finance: Source # 1. Cost of Debt: i. Cost Perpetual/Irredeemable Debt: The cost of debt is the rate of interest payable on debt. For example, a [...]
This article throws light upon the top two categories for classification of corporate securities. The categories are: 1. Ownership Securities 2. Creditor-ship Securities. Category # 1. Ownership Securities: The term 'ownership securities,' also known as 'capital stock' represents shares. Shares are the most universal form of raising long-term funds from the market. Every company, except a company limited by guarantee, [...]
This article throws light upon the top five forms of financial lease. The forms are: 1. Sale and Leaseback 2. Direct Leasing 3. Leveraged Lease 4. Straight Lease and Modified Lease 5. Primary and Secondary Lease. Financial Lease: Form # 1. Sale and Leaseback: A sale and leaseback arrangement involves the sale of an asset already owned by a firm [...]