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Related AccountingTools Courses Business Combinations and Consolidations Corporate Cash Management Corporate Finance When an intercompany loan is created, it should be fully documented, including the amount of the interest rate to be charged and principal repayment terms.

Financial Statements 74

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NOVEMBER 5, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Loan Stock? Loan stock is shares in a business that have been pledged as collateral for a loan.

Corporate Finance 75

Corporate Finance 75

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Related AccountingTools Courses Accountants' Guidebook Corporate Finance Related Articles Common Stock Account Common Stock Equivalent Premium on Common Stock The Difference Between Preferred Stock and Common Stock

Corporate Finance 73

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JULY 16, 2024

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. 72 ÷ 1 = 72.0 years) 2% interest rate. (72 72 ÷ 2 = 36.0 72 ÷ 3 = 24.0

Corporate Finance 75

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MARCH 24, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is an Original Issue Discount? An original issue discount is the difference between the face value of a bond and the price at which it was originally sold to an investor by the issuer.

Corporate Finance 75

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APRIL 4, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is Invoice Discounting? Invoice discounting is the practice of using a company's unpaid accounts receivable as collateral for a loan , which is issued by a finance company.

Invoicing 75

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JULY 10, 2023

Related Courses CFO Guidebook Corporate Finance Treasurer's Guidebook What are Dividends? Dividends are a portion of a company's earnings which it returns to investors , usually as a cash payment.

Corporate Finance 74

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Related Courses Capital Budgeting Corporate Finance Financial Analysis What is the Opportunity Cost of Capital? The opportunity cost of capital is the incremental return on investment that a business foregoes when it elects to use funds for an internal project, rather than investing cash in a marketable security.

Financial Analysis 74

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APRIL 3, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Private Equity? Private equity is an investment in a business that is not listed on a stock exchange. The private equity business has the potential to be extraordinarily profitable, and so attracts some of the best business talent.

Corporate Finance 75

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Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is a Bill of Exchange? A bill of exchange is a binding agreement by one party to pay a fixed amount of cash to another party as of a predetermined date or on demand. Bills of exchange are primarily used in international trade.

Billing 75

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JUNE 7, 2023

Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is Financial Leverage? Financial leverage is the use of debt to buy more assets. Leverage is employed to increase the return on equity.

Corporate Finance 75

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SEPTEMBER 2, 2023

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Corporate Finance 75

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Corporate Finance 76

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Corporate Finance 75

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Related Courses Corporate Finance Investor Relations Guidebook Public Company Accounting and Finance What is the Payout Ratio? The payout ratio is the proportion of dividends that a company pays to investors in relation to its reported net income. It is expressed as a percentage of the firm’s reported earnings.

Accruals 75

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MARCH 19, 2024

Capital stock is comprised of all types of shares issued by a corporation. An alternative definition of capital stock is that it is comprised of the total number of common shares and preferred shares that are authorized for issuance. What is Capital Stock?

Corporate Finance 40

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The company would most definitely be considered highly geared. How to Calculate Financial Gearing The calculation used for financial gearing is to add together all forms of debt and then divide by the total amount of equity. The company currently has $2,000,000 of equity, so there is now a 5x ratio of debt to equity.

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Corporate Finance 40

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SEPTEMBER 3, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is a Security? A security is a financial instrument issued by a business entity or government, which gives the buyer the right to either interest payments or a share of the earnings of the issuer. Securities form a key part of the financial structure of an economy.

Corporate Finance 40

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Corporate Finance 40

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Corporate Finance 40

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Related Courses CFO Guidebook Corporate Finance Treasurer's Guidebook What is Collateral? Collateral is an asset or group of assets that a borrower or guarantor has pledged as security for a loan. The lender has the legal right to seize and sell the asset(s) if the borrower is unable to pay back the loan by the agreed date.

Corporate Finance 40

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Corporate Finance 40

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The calculation is as follows: Total of annual dividend payments ÷ Current market price of the investment = Simple yield Related AccountingTools Courses Corporate Finance Treasurer's Guidebook Related Article Yield to Maturity

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