An appraisal right is the right of a shareholder to demand that a corporation buy back their shares at a fair price if the shareholders are not happy with a proposed merger or acquisition. Appraisal rights are designed to protect shareholders from being taken advantage of in a merger or acquisition. What is preemptive right? … Read more
The term “understanding facilities” refers to the practice of analyzing and understanding the financial statements of a company in order to make informed decisions about its future. This can include reviewing the company’s balance sheet, income statement, and cash flow statement in order to better understand its financial position and performance. Additionally, understanding facilities can … Read more
The payback period formula is used to calculate this.. Payback period formula and calculation What is payback period method explain its merits and demerits? The payback period is the length of time it takes for an investment to pay for itself. The payback period method is a simple way to compare investment options. It is … Read more
The original cost of an asset is the price paid to acquire the asset. This includes the purchase price, any associated fees, and any costs incurred to get the asset ready for its intended use. The original cost is used to calculate depreciation and is also used in some cost-benefit analyses. What is initial cost … Read more
Licensing Revenue is the revenue a company generates from licensing its products or services to another company. This can include licensing patents, trademarks, copyrights, or other intellectual property. It can also include licensing software, technology, or other business processes. What are the 3 types of licensing agreements? There are three types of licensing agreements: exclusive, … Read more
An abandonment option is a type of real options analysis that gives the holder of the option the right to abandon an investment project before its completion. The investment project is usually started with the expectation that it will generate positive cash flows over its lifetime. However, if the project’s actual cash flows are lower … Read more
How Implicit Costs Work: With Examples What is the meaning of implicit cost? In corporate finance, implicit costs are those opportunity costs that arise from not using the company’s own resources in the most efficient way possible. In other words, implicit costs are the opportunity costs of using company resources in a way that is … Read more
Evergreen Funding: The Basics You Need to Know What is CAPM in finance? The Capital Asset Pricing Model (CAPM) is a model used to determine the expected return of an investment based on its risk. The model takes into account the risk of the investment, as measured by its beta, and the expected return of … Read more
Fee income is the revenue generated by a company from the fees it charges for its services. Fee income can be generated from a variety of sources, including service fees, transaction fees, and interest on loans. Fee income is an important source of revenue for many companies, as it provides a steadier stream of income … Read more
Definition, How It Works, and Types. What is share capital? How does it work? What are the different types? How does share capital work? Share capital refers to the funds that a company raises by issuing shares. This can be done through a variety of means, such as an initial public offering (IPO), private placement, … Read more
