See Also: How to compensate sales staff Cafeteria Plan Keogh Plan Individual Retirement Account (IRA) 401k Revocable Trust Pension Plans Pension plans are often a key component of your employee’s benefits package from their perspective. But they can be costly for you. Basically there are two types of pension plans: Defined benefit Defined contribution Let’s
See Also: Earnings per Share (EPS) Price to Book Value Ratio Price to Sales Ratio Return on Equity Analysis Preferred Stocks (Preferred Share) Action Plan Price Earnings Ratio Analysis Definition Price earnings ratio (P/E ratio), defined easily as an indicator of how much investors pay for a share compared to the earnings a company generates
See Also: Bailout Payback Method Capital Budgeting Methods NPV vs Payback Method Payback Period Method Payback period shows the length of time required to repay the total initial investment through investment cash flows. A project is acceptable if its payback period is shorter than or equal to the cutoff period. Payback Period Formula Payback period
Passive Income Definition Tax law distinguishes between active income and passive income. Returns generated from investments or business activities that require the continued effort of the taxpayer are considered active income. Consider returns coming from investments or business activities that require little or no participation from the taxpayer passive income. Another type of income is
See Also: Can Factoring Be Better Than A Bank Loan? Loan Term Prepare an Investor Package Good Budgeting Processes What the Banker Wants You to Know Does Your Management Team Understand the Financials? Preparing a Loan Package Knowing the process of preparing a loan package can be one of the most resourceful tools for business
Other People’s Money (OPM) In finance, other people’s money, or OPM, is a slang term that refers to financial leverage. Other people’s money refers to borrowed capital that is used to increase the potential returns as well as the risks of an investment. OPM can be used by individuals or by corporations. Using other people’s
See Also: Opportunity Costs Capital Budgeting Methods Opportunity Costs In Your Decision Making Opportunity Cost Decision Making An opportunity cost is a hypothetical cost incurred by selecting one alternative over the next best available alternative. Opportunity costs are relevant in business decision making. In addition, companies commonly use them when evaluating corporate projects. Opportunity Cost
See also: Valuation Methods Adjusted Present Value Method Internal Rate of Return Method Time Value of Money Capital Budgeting Methods Rule of 72 Net Present Value Definition Net Present Value (NPV) is defined as the present value of the future net cash flows from an investment project. NPV is one of the main ways to evaluate
See Also: How Factoring Can Make or Save Money How important is personal credit in negotiating a commercial loan? Payroll Accounting Accounting Concepts Marginal Costs Nest Egg Definition A nest egg is an amount of assets or cash put away for a certain cause or purchase like retirement. The assets are usually invested very conservatively.
See Also: Common Stock Company Valuation Convertible Debt Instrument Coupon Rate Bond Covenant Definition of a Bond Contract Non-Investment Grade Bonds (Unsecured Debentures) A non-investment grade bond, also called a speculative bond, a high yield bond, an unsecured debenture, or a junk bond, is a bond that is considered a low quality investment because the
Market Rate Definition The market rate, defined as the rate of interest, on a loan or investment, which is commonly available on the market for that product, defined the cost of benefit of the tool. For a loan, the market rate is the average rate of interest that will be charged to the receiver from
See Also: Payback Period Method Bailout Payback Method Rule of 72 NPV vs Payback Method NPV (Net Present Value) is calculated in terms of currency while Payback method refers to the period of time required for the return on an investment to repay the total initial investment. Payback, NPV and many other measurements form a
JOIN THE NEXT STRATEGIC CFO™ WORKSHOP SERIES
Strategic CFO™ Financial Leadership Workshop
The Art Of The CFO®
August 7-10th, 2023
CONNECT WITH STRATEGIC CFO™
