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

JUNE 12, 2023

Related Courses Capital Budgeting Corporate Finance Treasurer's Guidebook What is the Simple Rate of Return? Related Articles After-Tax Real Rate of Return Average Rate of Return Effective Rate of Return How to Calculate the Internal Rate of Return Incremental Internal Rate of Return Return on Investment

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? Second, interest expense is tax deductible in many tax jurisdictions, which reduces the net cost of debt to the borrower. Financial leverage is the use of debt to buy more assets.

Corporate Finance 75

Corporate Finance Financial Statements Tax Financial Analysis 75

Accounting Tools

SEPTEMBER 26, 2023

Related Courses Corporate Finance Governmental Accounting What is Equivalent Taxable Yield? Equivalent taxable yield is the effective interest rate that must be offered on a taxable bond instrument in order to arrive at the same after-tax yield built into a tax-exempt bond instrument.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

MAY 8, 2023

Related Courses Capital Budgeting Corporate Finance What is the Cost of Preferred Stock? These dividends are not tax deductible , so the cost of preferred stock is always higher than the cost of debt – for which interest payments are tax deductible.

Corporate Finance 40

Corporate Finance Budgeting Tax Financial Analysis 40

Accounting Tools

OCTOBER 21, 2024

Fees and taxes. Related AccountingTools Course Corporate Finance The maturity value increases when the interest on the investment compounds at a rapid rate (such as monthly or quarterly), since interest is being calculated on a continually growing base.

Corporate Finance 40

Corporate Finance 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

AUGUST 25, 2023

Related Courses Corporate Finance GAAP Guidebook What is a Holding Period? A holding period is the duration of an investment by an investor. It begins with the purchase date by the investor and ends with the sale date.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MARCH 2, 2024

Advantages of an Equipment Trust Certificate Equipment trust certificates may be employed because of the associated tax benefit; because the borrower does not have title to the asset, the borrower does not pay property taxes on it until the associated debt has been paid off. This represents a substantial deferral of tax payments.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

JULY 11, 2024

This tax exemption makes municipal bonds an especially attractive investment for individuals with a high incremental tax rate. Advantages of Municipal Bonds The interest income that an investor receives from a municipal bond is exempt from federal taxation and may also be exempt from taxation at lower levels of government.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

JANUARY 24, 2024

Second, interest expenses are tax deductible, which lowers the after-tax cost of debt financing. This means that a business generates a net gain in its income by using debt financing. Third, debt can be used to invest in activities that generate more income than the cost of the debt.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MAY 15, 2024

There are also several advantages to term loans from the perspective of the borrower, which are as follows: Tax deductible. Depending on the situation, the interest paid on a term loan may be tax deductible. Credit score enhancement.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MAY 9, 2023

Related Courses Capital Budgeting Corporate Finance What is the Cost of Debt? The cost of debt is the after-tax effective rate paid by a borrower on its debt. The cost of debt is the least expensive part of the cost of capital, since it is tax deductible.

Corporate Finance 40

Corporate Finance Budgeting Tax Financial Analysis 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

NOVEMBER 5, 2023

Related Courses Accounting for Investments Corporate Finance Treasurer's Guidebook What is Return of Capital? The return of capital refers to the return of invested funds from an investment to an investor. This transfer of funds represents a return of the original investment, not any additional capital gain on the investment.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

JANUARY 19, 2024

For example, national governments can issue debentures, because they can raise taxes to pay off their obligations. Related AccountingTools Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook Related Articles Debenture Bond Subordinated Debenture

Corporate Finance 40

Corporate Finance Billing Tax 40

Accounting Tools

AUGUST 8, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is a Bearer Bond? However, they are ideal for those investors who want their ownership of securities to remain anonymous, which is especially attractive for those trying to hide their income from tax authorities.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

MAY 13, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is an Unsecured Bond? Alternatively, the entity may be so large, profitable, and well-financed that investors are willing to do without the extra protection of a security feature.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MARCH 27, 2023

Related Courses Corporate Finance Investor Relations Guidebook Public Company Accounting and Finance What is Shareholder Value Added? How to Calculate Shareholder Value Added To calculate shareholder value added, subtract the cost of capital from a firm’s net operating profit after tax.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

JANUARY 2, 2024

Or, if the entity is a government, it cannot raise sufficient cash from taxes to pay for its bond obligations. Related AccountingTools Course Corporate Finance Types of Financial Risk There are several types of financial risk, which include those noted below.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

APRIL 5, 2023

Related Courses Corporate Cash Management Corporate Finance Investing Guidebook What is Interest Earned? Taxation of Interest Earned Interest earned is usually taxable at the ordinary tax rate. Interest earned is the amount of interest earned from investments that pay the holder a regular series of mandated payments.

Accruals 40

Accruals Corporate Finance Deposits Tax 40

Accounting Tools

AUGUST 3, 2023

Related Courses Corporate Finance Investor Relations Guidebook Public Company Accounting and Finance What is Shareholder Value? Further, they might engage in tax management ploys to pay less than the company’s fair share of taxes.

Corporate Finance 40

Corporate Finance Financial Reporting Tax Accounting 40

Accounting Tools

APRIL 24, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is the Yield to Maturity? Yield to maturity is the rate of return expected on a bond if it is held until its maturity date. It is expressed as an annual rate of return.

Corporate Finance 40

Corporate Finance Tax Financial Analysis 40

Accounting Tools

JANUARY 24, 2024

Second, interest expense is tax deductible, so its net cost to the borrower can be comparatively low. And finally, if the borrower uses the funds to purchase assets that generate a reasonable return, it can earn a net gain over the cost of the funds acquired.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

APRIL 22, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Positive Leverage? The 2% differential is positive leverage that will result in income of $20,000 for the person, prior to the effects of income taxes.

Corporate Finance 40

Corporate Finance Tax 40

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

Accounting Tools

MAY 7, 2024

Leaseback deals are most common in the real estate market, such as when a company sells its corporate headquarters and then leases it back. Related AccountingTools Courses Accounting for Leases Corporate Finance Treasurer’s Guidebook Advantages of a Leaseback There are multiple benefits associated with a leaseback.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

OCTOBER 5, 2023

Related Courses Corporate Finance An investment banker assists clients with either fund raising or merger and acquisition activity. In the latter case, the level of specialization may extend to just offering advice on certain types of tax-specific transactions, or in regard to corporate spin-offs or reorganizations.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Outsourced Bookeeping

SEPTEMBER 27, 2024

These disengaged candidates find certifications like CFA and CMA attractive options for pivoting their careers into investment management, strategic management, and corporate finance.

Outsourced Bookkeeping 52

Outsourced Bookkeeping CPA Accounting Accounting 52

Accounting Tools

NOVEMBER 2, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Middle Market Banking? Middle market banking is the concept of providing investment banking services to companies with revenues in the range of $50 million to $1 billion.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

AUGUST 5, 2023

Related Courses Capital Budgeting Corporate Finance What is the Weighted Average Cost of Capital? The weighted average cost of capital (WACC) is a compilation of the aggregate financing cost of a business. In this calculation, each element of the firm’s financing cost is proportionately represented.

Corporate Finance 40

Corporate Finance Budgeting Tax Financial Analysis 40

Accounting Tools

NOVEMBER 3, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is Trading on Equity? If a company generates a profit through this financing technique, its shareholders earn a greater return on their investments. And second, interest expense is tax deductible in many tax jurisdictions, which reduces the net cost to the borrower.

Corporate Finance 40

Corporate Finance Tax Financial Analysis 40

Accounting Tools

DECEMBER 20, 2023

Related AccountingTools Courses Corporate Cash Management Corporate Finance Investing Guidebook Understanding Convertible Securities Investors want the option to convert into common stock, so they are usually willing to accept a lower rate of return on the interest payments being made to them on the original convertible security.

Corporate Finance 40

Corporate Finance Financial Statements Tax 40

Accounting Tools

FEBRUARY 15, 2024

Related AccountingTools Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook Obtain an Interest Deduction The interest expense on bonds is tax deductible , so a company can reduce its taxable income by issuing bonds.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

AvidXchange

FEBRUARY 1, 2022

So should you if you want to rise in the corporate finance profession. To become a controller, you’ll need to learn more about corporate accounting as well as the impact of taxes, regulations and audits on corporate finances. Your CFO thinks about this often. Aiming for the top? Want to be a CFO?

AP 52

AP Corporate Finance Accounts Payable Accounts Payable 52

Accounting Tools

JUNE 7, 2023

Related Courses Corporate Finance Financial Analysis What is the Cost of Capital Formula? To derive the cost of debt, multiply the interest expense associated with the debt by the inverse of the tax rate percentage, and divide the result by the amount of debt outstanding. Its incremental tax rate is 34%.

Financial Analysis 40

Financial Analysis Corporate Finance Tax 40

AvidXchange

SEPTEMBER 19, 2017

Bill : My name is Bill Schiffli, and I’ve been a Partner at Scale Finance, LLC for about two years now. Scale Finance currently serves over 120 entrepreneurial companies, and we deliver flexible corporate finance and accounting support, leveraging world-class professional expertise and experience.

Billing 52

Billing AP Accounts Payable Accounts Payable 52