See Also: Cost of Capital Cost of Capital Funding Arbitrage Pricing Theory APV Valuation Capital Budgeting Methods Discount Rates NPV Required Rate of Return Capital Asset Pricing Model (CAPM) The most popular method to calculate cost of equity is Capital Asset Pricing Model (CAPM). Why? Because it displays the relationship between risk and expected return
See Also: Chart of Accounts (COA) Problems in Chart of Accounts Design Complex Number for SGA Expenses Role of a Company Back Office Standard Chart of Accounts In accounting, a standard chart of accounts is a numbered list of the accounts that comprise a company’s general ledger. Furthermore, the company chart of accounts is basically a filing system for categorizing all of
See also: Discounted Cash Flow Analysis Valuation Methods Free Cash Flow Analysis Free Cash Flow Definition The business is like a human body, the body needs blood, the business needs cash. Investor look at Free Cash Flow to make their decision for investment. Interestingly, it’s not a number you can come up easily. First, let’s look
Shareholders’ Equity Definition The Shareholders’ Equity Definition is one of the three primary components of the balance sheet: assets, liabilities, shareholders’ (or owners’) equity. These three components comprise the well-known accounting equation of assets = liabilities + shareholders’ equity. This equation is important when beginning to think about what shareholders’ equity means for a business. The
See Also: Return On Equity Example Return on Asset Financial Leverage Gross Profit Margin Ratio Analysis Return on Equity Analysis Fixed Asset Turnover Analysis Return on Equity (ROE) The return on equity, or ROE, is defined as the amount of profit or net income a company earns per investment dollar. It reveals how much profit a company
See Also: The Dilemma of Financing a Start-up Company Angel Investor Mezzanine Debt Financing What is a Term Sheet Working Capital Why Venture Capital? Why venture capital versus other forms of equity? For one, VC partners tend to be experienced entrepreneurs themselves who have taken a startup from inception to an exit through an IPO
Singapore Stock Exchange (SGX) A merger between the Stock Exchange of Singapore and the Singapore International Monetary Exchange formed the Singapore Stock Exchange (SGX) in 1999. Furthermore, it is one of the largest Asian exchanges in terms of market capitalization and trading volume. Singapore Stock Exchange (SGX) Meaning The SGX is well known for its
See Also: External Sources of Cash What Does A Lender Want To Know Finding The Right Lender Due Diligence on Lenders Weighted Average Cost of Capital (WACC) Mezzanine Financing A mezzanine lender, provider of mezzanine financing, functions similar to a bank in terms of providing a source of capital for companies. They get their capital
Return on Common Equity (ROCE) Definition The return on common equity, or ROCE, is defined as the amount of profit or net income a company earns per investment dollar. The investment dollars differ in that it only accounts for common shareholders. This is often beneficial because it allows companies and investors alike to see what sort of
See Also: Valuation Methods Arbitrage Pricing Theory Capital Budgeting Methods Discount Rates NPV Internal Rate of Return Method Required Rate of Return The required rate of return, defined as the minimum return the investor will accept for a particular investment, is a pivotal concept to evaluating any investment. It is supposed to compensate the investor
See Also: Common Stock Definition Preferred Stocks (Preferred Share) Treasury Stock (Repurchased Shares) Owner’s Equity Balance Sheet Paid in Capital Definition The paid in capital definition is the total amount paid on equity or stock over the par value of the stock. In addition, it is a balance sheet account in the stockholder’s equity section. This
See Also: Valuation Methods Net Present Value Method Internal Rate of Return Method NPV vs IRR Capitalization Adjusted Present Value (APV) Method of Valuation is the net present value of a project if financed solely by equity (present value of un-leveraged cash flows) plus the present value of all the benefits of financing. Use this
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