Remove Article Remove Corporate Finance Remove Financial Analysis
article thumbnail

Opportunity cost of capital definition

Accounting Tools

Related Courses Capital Budgeting Corporate Finance Financial Analysis What is the Opportunity Cost of Capital? Related Articles Incremental Cost of Capital Weighted Average Cost of Capital

article thumbnail

The Rule of 72 definition

Accounting Tools

years) Related AccountingTools Courses Corporate Finance Essentials of Business Math Financial Analysis The Rule of 72 is fairly accurate for low rates of return, and becomes increasingly inaccurate when higher rates of return are incorporated into the calculation. Related Article Rule of 69 72 รท 1 = 72.0

professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Annualized rate definition

Accounting Tools

Related Courses Corporate Finance Financial Analysis What is the Annualized Rate? Related Articles Average Rate of Return Rate of Return The Accounting Rate of Return The Effective Rate of Return The Simple Rate of Return The Time-Adjusted Rate of Return

article thumbnail

Reverse leverage definition

Accounting Tools

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Article Leverage Ratios Since he is generating a negative return of 5% on his investment, David has experienced negative leverage.

article thumbnail

Leverage definition

Accounting Tools

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Articles Leverage Ratios Leveraged Lease This issue can be mitigated by restricting the amount of debt that a business takes on, as well as by maintaining a reasonable cash reserve.

article thumbnail

Optimal capital structure definition

Accounting Tools

Related AccountingTools Courses Corporate Finance Financial Analysis Treasurer's Guidebook How Optimal Capital Structure is Measured The capital structure is commonly measured with the debt-to-equity ratio. Related Articles Capital Structure Analysis Complex Capital Structure Simple Capital Structure

article thumbnail

Risk-adjusted discount rate definition

Accounting Tools

Related Courses Corporate Finance Financial Analysis Treasurer's Guidebook What is the Risk-Adjusted Discount Rate? Related Articles How to Calculate NPV How to Calculate the Internal Rate of Return Incremental Internal Rate of Return The Discounted Cash Flow Method