Accounting Tools

JUNE 6, 2023

Related Courses Corporate Finance Financial Analysis Treasurer's Guidebook The after-tax cost of debt is the initial cost of debt , adjusted for the effects of the incremental income tax rate. The after-tax cost of debt is included in the calculation of the cost of capital of a business.

Tax 40

Tax Corporate Finance Financial Analysis Expense Reports 40

Accounting Tools

MARCH 28, 2024

If they had instead invested $200,000 and the business had borrowed $800,000 to still achieve total financing of $1 million, the return on investment would now be 50% (though the after-tax cost of debt must also be considered).

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

FEBRUARY 12, 2024

To do so, he takes on a loan that has a net after-tax cost of 8%. After one year, he finds that the actual net after-tax return on his purchase of the manufacturing company is just 3%. Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Article Leverage Ratios

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

JUNE 12, 2023

Related Courses Capital Budgeting Corporate Finance Treasurer's Guidebook What is the Simple Rate of Return? The simple rate of return is used for capital budgeting analysis, to determine whether a business should invest in a fixed asset and any incremental change in working capital associated with the asset.

Corporate Finance 75

Corporate Finance Budgeting Tax Financial Analysis 75

Accounting Tools

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. However, an excessive amount of financial leverage increases the risk of failure, since it becomes more difficult to repay debt.

Corporate Finance 75

Corporate Finance Financial Statements Tax Financial Analysis 75

Accounting Tools

JULY 11, 2024

The optimal capital structure of a business is the blend of debt financing and equity financing that minimizes its weighted-average cost of capital while maximizing its market value. The ratio is usually plotted on a trend line to see how it is changing over time.

Financial Analysis 40

Financial Analysis Corporate Finance Tax 40

Outsourced Bookeeping

SEPTEMBER 27, 2024

87% of companies find it increasingly difficult to secure the right accounting talent for essential and core accounting functions like financial analysis, budgeting, and reporting. Understanding the Root Causes of the US Accounting Resource Shortage The result?

Outsourced Bookkeeping 52

Outsourced Bookkeeping CPA Accounting Accounting 52