Basel III
What is Basel III? Basel III is a list of comprehensive reforms whose goal is to strengthen the regulation, supervision and risk management of the banking sector. This is …
Key Performance Indicators (KPIs) – All You Need To Know
Key Performance Indicators or KPI are the quantifiable measures that a company uses to track the performance over time. KPIs measures or demonstrates how effectively the company is achieving …
Interest Tax Shields – Meaning, Importance And More
Interest tax shields refer to the reduction in the tax liability due to the interest expenses. Companies pay taxes on the income they generate. Interest expenses (via loan and …
Default Risk Premium – Meaning, Purpose And Calculation
Default risk premium or (DRP) represent the extra return that the borrower must pay the lender for assuming the extra or default risk. It is commonly used in the …
Leveraged Finance – Meaning, Effects And More
Leveraged finance means giving more debt to a business than what is considered normal for that business. Giving more than the normal debt implies that the debt is riskier, …
Top-down Budgeting – Process, Advantages And Disadvantages
Top-down budgeting is a crucial method of preparing a budget for an organization or a company. Under this method, the senior management prepares a high-level budget on the basis …
Capital Budgeting Techniques With an Example
Capital Budgeting Techniques We have already discussed the importance of capital budgeting. It is a process that helps in planning the investment projects of an organization in long run. …
Public Finance
What is Public Finance? In simple layman terms, public finance is the study of finance related to government entities. It revolves around the role of government income and expenditure …
Bullish And Bearish – Meaning, Relevance And More
The term bullish and bearish describes the condition in the market or the sentiment of the investors or a general market trend. Both bullish and bearish are the antonym …
Times Interest Earned – Formula, Advantages, Limitations
Times interest earned or (TIE) is a metric that helps to measure a company’s ability to meet the interest payments on its debt. To calculate TIE or interest coverage …
