WACC – Weighted Average Cost of Capital

The capital structure of a firm comprises of three financing components i.e. shareholders’ funds (including retained earnings), borrowed funds, and preference shareholders funds. All capital components have one feature in common i.e. the investors who provided the...

Relationship between mean, median and mode

An empirical relationship exists between mean, median and mode. For a moderately skewed distribution it is:     If a frequency distribution has a symmetrical frequency curve, the mean, median and mode are equal.     If a frequency distribution is...

How to Calculate Mode

The value which has a higher frequency than others in its neighborhood is called mode. The important characteristic of mode is that, it is easy to compute and may be applied to qualitative as well as quantitative data. It is generally used when the data is of...

How to Calculate Median

When the observations are arranged in ascending or descending order, the value which divides them into two parts is called median. Therefore median is that value below and above which 50% of observations lie. The median is not influenced by extreme values in the data...