Capital Structure

Value of preferred stock

Value of preferred stock              Value of Preferred stock is calculated by dividing the Dividend per share by the Cost of preferred stock.                                                         More >>>>>

Gordon's growth model

Gordon’s growth model    Gordon’s model of calculation of price of a share is based on the Dividend relevance Theory.                                                                                        More >>>>>

Value of preferred stock

Cost of preferred stock            It is the rate of return that an investor investing in the preferred stock of a company expects from his investment.                                                          More >>>>>

Cost of new equity with flotation costs

Cost of new equity with flotation costs                                      Cost of new equity with flotation costs is arrived at using the dividend capitalization model.                                      More >>>>>

After-tax cost of debt

After-Tax cost of Debt                        After-tax cost of debt is the pre-tax cost of debt adjusted for taxes. It is arrived at by deducting tax savings from pre-tax cost of debt.                                                      More >>>>>