The cost of capital for a business is the average of the cost of equity and the cost of debt. The weighted average cost of capital formula (WACC) takes into account the level of debt and equity finance used to fund a business to calculate its true cost of capital.
Enterprise value (EV) and equity or market value (MV) are two different terms used in the determination of the value of a business. Enterprise value is the value placed on the net operating assets of a business by all stakeholders, whereas equity value is the value placed on all assets of the business less its net debt by equity holders.
The capital structure of a business is the mixture of equity and debt it uses to finance its operations. The optimum capital structure is one which minimizes the weighted average cost of capital and thereby maximizes the valuation of the business.
The convertible loan note calculator shows the effect on the capitalization table of new equity investment when this triggers the conversion of a loan note. The calculator takes into account the impact of any discount or cap contained within the convertible loan note agreement.
Crowdfunding is a technique for a business to obtain finance in which small amounts of funding are raised from a large number of people (the crowd). Crowdfunding can be either rewards, debt or equity based depending on the requirements of the business.
This monthly lease payment calculator works out the monthly payment (Pmt) needed at the end of each month taking into account the cost of the asset (C), its residual value (R), the lease interest rate (i), the number of payments (n), and the number of advance payments (a) required by the lease agreement.
This free loan calculator with amortization schedule can be used for any loan up to a maximum term of 3,650 payment periods.
The calculator will produce a loan amortization schedule and calculate the periodic repayments due on the loan together with the total amount repayable and total interest payable over the term.
This maximum business loan calculator can be used when preparing financial projections for a business plan to estimate the maximum amount a lender is willing to lend based on three lending criteria, collateral available, the capacity of the business to make repayments, and the net worth of the business.