Small and large businesses need to raise capital to finance growth plans. There is a cost associated with different forms of capital, such as debt, common stock and preferred stock. The weighted ...
Marginal efficiency of capital (MEC) is the discount rate at which the present value of the future yields from a capital asset are equal to its cost of acquisition. The idea behind computing the MEC ...
The cost of capital is used primarily to make decisions which involve raising new capital. So, focus on todayís marginal costs (for WACC).
Venture capital should come with a warning label. In our experience, VC kills more startups than slow customer adoption, technical debt and co-founder infighting — combined. VC should be a catalyst ...
The law of diminishing returns is a concept of economics that every entrepreneur should understand. Also known as the law of diminishing marginal returns, this law helps entrepreneurs and economists ...
A programming model of project selection is extended to include the issue of new equity as one of the activities. This allows the marginal cost of capital, in each year up to a planning horizon, to be ...
We develop a natural gas distribution utility pricing model that includes optimization of supply mix and capacity expansion, financial analysis of revenue requirements, and design of either ...