Archive for April, 2012

What is weighted average cost of capital?

Monday, April 30th, 2012

weighted average cost of capitalWeight average cost of capital is abbreviated as WACC. It means the calculation of the capital cost of a firm where it considered that the capital in the categories are weighted proportionately. All the sources of capital, such as, preferred stock, common stock, debt that is long term and the bonds would be included in the calculation of the weight average cost of the capital.

When all the capitals are considered equal the result of weight average cost of capital would be increased when there is an increase of the rate and beta of the equity return.  The equation of the weight average cost of capital is calculated by the multiplication of each component of the capital by a weigh that is proportionate and then adding it up. A certain formula is issue by the business for discounting the floe of cash at the weight average cost of capital for determining the NPV.

Dealing with a car loan

Tuesday, April 24th, 2012

When it comes to car loans, you need to make sure that your research is done well and you’re thorough in order to get the best deal for your car. It is everybody’s wish to own a car. But if you wish to take out a loan then make sure that you do it right. Don’t go for the first company you hear of. Scan the market. Check out local and online companies. Compare prices and the policies of various companies.

Do remember to check if the company is registered under the state laws. Be sure from your side. Keep all your car and personal documents in order. Never lie about your finances, as everything will be crosschecked. Never be tempted by low installment rates. These companies have longer repayment durations and they keep changing the interest rates. So you will be losing more money than you plan to save. Ask your financial advisor for help if this is your first loan.

Benefits of having personal checks

Wednesday, April 18th, 2012

personal checks,Personal FinancePersonal checks are very effective in depositing money into checking accounts or person to person transaction order to the bank for entitling the amount of money written on the check. It is a paper order for encashment of a specified amount from the bearer’s account to the person entitled with the check. It is somewhat like paper cash.

Personal checks are still preferred over many other methods of transactions because of some very essential benefits.

  • Personal checks come with duplicate sheets or a checkbook where you can note down the details of check you have issued and keep a healthy track of your payments.
  • Hassle-free method of making payments without having to bother about withdrawing cash and carry it on the road making yourself vulnerable to theft and robbery.
  • You may write the check to a company instead of any particular person serving you and rest assured about the money landing on to safe hands.

A detailed note on self directed IRA account

Thursday, April 12th, 2012

self directed IRA account, IRA accountIf you are looking for retirement plans which will benefit you in the longer run, then you should opt for an Individual Retirement Arrangement or better known as IRA. If the Retirement plans that you have opted for yield poor returns, then now is the time to go ahead and get an IRA account. The biggest advantage of an IRA is the fact that the owner makes the investment decisions and he has full control over the investments for the retirement plan.

One of the most beneficial Individual Retirement Arrangement is the Self Directed IRA. It is the best way to take control over your financial future and you get to call the shots. The owner gets to decide where, when and how does he wants to invest in his retirement and pension plan funds. The owner gets a much broader range of investments possible with the Individual Retirement Arrangement so that his tomorrow is financially safe and secure.

Business credit card options for entrepreneurs

Friday, April 6th, 2012

Business credit card, credit cardFor an entrepreneur, credit cards are very valuable assets. Entrepreneurs are those kinds of professionals who are always involved in heavy cash transactions. Therefore the need of constant flow of cash is always required by them as they are always in the process of purchasing without any hard cash. But sometimes a number of problems generate when the revenue of the sales doesn’t match with the spending. And as a result of this an entrepreneur often gets bankrupt when the spending gets out of control.

As an entrepreneur if you use a small credit card for your work then too it will need a personal guarantee. If for any reason the business is not a successful one at the end of the day then the bank will hold someone liable for this as its norm. But in some cases some small credits cards waive the option of personal guarantee for business transactions.