Z-TransformThe Z-transform is a mathematical tool which is used to convert the difference equations in discrete time domain into the algebraic equations in z-domain.Mathematically, $\mathrm{\mathit{x\left ( n \right )}}$ if is a discrete time function, then its Z-transform is defined as, $$\mathrm{\mathit{Z\left [ x\left ( n \right ) \right ]\mathrm{\, ... Read More
Realization of Continuous-Time SystemRealisation of a continuous-time LTI system means obtaining a network corresponding to the differential equation or transfer function of the system.The transfer function of the system can be realised either by using integrators or differentiators. Due to certain drawbacks, the differentiators are not used to realise the ... Read More
Stability and CausalityThe necessary and sufficient condition for a causal linear time invariant (LTI) discrete-time system to be BIBO stable is given by, $$\mathrm{\mathit{\sum_{n=\mathrm{0}}^{\infty }\left|h\left ( n \right ) \right|< \infty }}$$Therefore, if the impulse response of an LTI discrete-time system is absolutely summable, then the system is BIBO stable.Also, ... Read More
Companies in many countries, especially developing countries, may need assistance from the government to sustain and grow. The companies in these countries may be provided with reduced interest on the loans they acquire from the market or investors. These reductions are offered by the governments and are known as subsidies.Subsidized ... Read More
The ultimate capital structure formed with debt, equity, and preferred debt that a company strives to obtain is known as the target capital structure of a company. The target capital structure of a company is decided depending upon some factors that are related to the financial condition of the company.Usually, ... Read More
Issue costs are one-time costs that are incurred while raising funds by debt and equity financing for a project. As the name suggests, every company needs to spend money while issuing securities in the stock exchange. It is incurred while offering the IPOs or raising debt from the market through ... Read More
Levered beta indicates the systematic risk a stock has in the capital asset pricing model (CAPM). In CAPM, the function of the financial debt versus equity represents the levered beta or equity beta.The debt a company collects from the markets and the equity it has in its reservoir make up ... Read More
The choice of using Capital Cash Flow (CCF) in evaluating an investment project is related more to convenience than theoretical grounds. CCF is not the only approach for evaluating an investment project. It is used to evaluate a project when some certain conditions are present. In this article, we will ... Read More
The asset beta or unlevered beta of the assets of a company is a representation of the systematic risks of the assets. The asset beta is the weighted average of debt beta and equity beta of the assets. It is also called unlevered beta because it can be determined from ... Read More
Free Cash Flow (or, FCF) is a term widely used in Corporate Finance. It is the extra cash flow available with the company after deducting the working capital expenditures and the expenses towards fixed assets. It is significant because it shows the flexibility of a company to meet newer expenditures ... Read More