Original Issue Discount Bonds – Meaning, Accounting, Benefits, and Drawbacks
What are Original Issue Discount (OID) Bonds?Original issue discount is the difference between the face value of bonds and the price at which the… Read Article
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… Read Article
Key Performance Indicators (KPIs) – All You Need To Know
Key Performance Indicators or KPIs are the quantifiable measures that a company uses to track performance over time. KPIs measure or demonstrate how effectively… Read Article
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.… Read Article
Default Risk Premium – Meaning, Purpose And Calculation
Default risk premium or (DRP) represents the extra return that the borrower must pay the lender for assuming the extra or default risk. It… Read Article
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… Read Article
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… Read Article
Capital Budgeting Techniques With an Example
Capital Budgeting TechniquesCapital budgeting is a process that helps in planning the investment projects of an organization in the long run. Let’s understand all… Read Article
Public Finance
What is Public Finance?In simple layman’s terms, public finance is the study of finance related to government entities. It revolves around the role of… Read Article
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… Read Article
Times Interest Earned – Formula, Advantages, Limitations
Times interest earned (TIE) is a metric that helps to measure a company’s ability to meet the interest payments on its debt. To calculate… Read Article