WACC
WACC is the weighted average cost of capital. It is the minimum return that a company must earn to satisfy all the stakeholders (viz lenders and shareholders) who give money to the company. Lenders demand …
Govt Debt Sustainability vis a vis GDP Growth
Basic rule is that nominal GDP growth should be more than the interest rate for govt debt to not balloon. If the interest rate in a country is 6% then the nominal GDP growth rate …
Inflation and Investing
Two main ideas to keep in mind about inflation’s impact on money and other assets are: a) ‘Real’ assets keep getting more expensive. Hence owning real assets is better than owning cash.b) Cash keeps losing …