Financial managements lecture twelve

         Hi, we are here with financial managements lecture 12, and we will answer properly Mario’s question from two months ago, what is the term of interest rate? Do You remember asking that? I am going to quickly answer that.  It will not be very precise because it requires two weeks not two minutes,  today we are going to talk about 2 or 3 lectures. Starting with interest rate.  The topic for the next three or four lectures are very important the fundamental topic in finance.

       That is chapter 6. From the text book, page 151 . one of the better lectures on the internet  of interest rate will be on youtube at my channel KMpetrov. It is called, and you can just go of capital and interest . now going to the explanation, the explanation is amazingly simple, the interest is simply cost of capital, that’s it. Nothing more and nothing less, it is the easiest simplest definition you can get. Now come to the hardest of all definitions.  Capital  is probably hardest and most difficult concepts in finance, simply may be because it is the most misunderstood. And because most people know the wrong think about it. Here is the explanation.  The pure concept of capital is same as equity.

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