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Finance / July 31, 2018 / Alicia Franklin

All business expenses can be divided into two types of costs: fixed and variable. Fixed costs are those expenditures that do not change based on sales (or lack thereof). That...

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Finance / August 6, 2018 / Emmalynn Leach

In the real world, simple interest is rarely used. When you deposit money into an interest-bearing account, or take out a line of credit, the interest that accumulates is added...

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Finance / August 5, 2018 / Hana Cannon

Cumulative interest is sometimes used to determine which loan in a series is most economical. However, cumulative interest alone does not account for other important factors, such as initial loan...

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Finance / August 5, 2018 / Emmalynn Leach

Fixed costs can be assets like buildings and equipment. For example, a beverage company that bottles water is going to need a physical building and an assembly line that includes...

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Finance / August 5, 2018 / Hanna Hunt

The cost of debt is the return that a company provides to its debtholders and creditors. These capital providers need to be compensated for any risk exposure that comes with...

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Finance / August 6, 2018 / Andi Barnett

The calculation of EV is affected by the assumptions regarding timing of the cash flows within a projection interval. The mid-period convention assumes that the UFCFs occur at the middle...

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Finance / August 5, 2018 / Alicia Franklin

In this formula, the most important part is the "number of shares". You can simply take the record of the beginning shares and the ending shares, and calculate the simple...

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Finance / August 5, 2018 / Parker Hardy

In a company, debt finance can take a number of forms. For example, money can be borrowed from a bank as a term loan, or money can be borrowed from...

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