What Is Cost of Capital?

The cost of capital is the price that a company must pay for funds, either through equity or debt financing. The cost of equity is the return that shareholders expect to earn on their investment, while the cost of debt is the interest rate that a company must pay on its borrowings. The cost of … Read more

The tax year is the year in which income is taxed.

For most people, the tax year is the same as the calendar year. The tax year ends on December 31. There are two types of tax years: the fiscal year and the calendar year.. The tax year is the yearly period used for calculating taxes. It usually runs from January 1 to December 31, but … Read more

How the Least Squares Criterion Method Works.

The least squares criterion method is a statistical technique used to estimate the parameters of a linear regression model. The technique minimizes the sum of the squared residuals, which is the difference between the observed values of the dependent variable and the predicted values of the dependent variable. The least squares criterion is also known … Read more