Cost of Capital
MeaningWhat is the cost of capital? The cost of capital of an investor in financial management is equal to the return an investor can… Read Article
Intrinsic Value of Stock
Intrinsic Value DefinitionIntrinsic value, in general, is defined as the fair or inherent value of any asset, whether real or financial, company, its stock,… Read Article
9 Attributes of Effective Management
What is Effective Management?Effective management is one that is successful in achieving the short as well as a long-term goals of an organization while… Read Article
Capital Lease Criteria
In a capital lease, a lessor only finances the asset, but the ownership rights reside with the lessee. And therefore, another term for a… Read Article
Operating Ratio
The operating ratio is a type of profitability ratio. It is the comparison of an operating expense to the revenue of a business. Operating… Read Article
Short-term Finance
What is Short Term Finance?Short-term finance refers to sources of finance for a small period, normally less than a year. In businesses, it is… Read Article
Cumulative Preferred Stock
A cumulative preferred stock is a type of preferred stock wherein the stockholders are entitled to receive cumulative dividends if any dividend payment has… Read Article
Cost Volume Profit Analysis
Definition of Cost Volume Profit AnalysisCost Volume Profit Analysis explains the behavior of profits in response to a change in cost and volume. In other… Read Article
Return on Net Worth
Return on Net Worth DefinitionReturn on Net Worth is a profitability ratio developed from the perspective of the investor and not the company. By… Read Article
Leverage Ratios
What are Leverage Ratios?Leverage ratios are financial ratios that measure a company’s financial stability using its capital structure, financial obligations, and its ability to… Read Article
Market Value Ratios
The market value ratios are important for investors, management, etc. These ratios help decide whether the shares are overvalued, undervalued, or at par with… Read Article