For companies, finance is one of the most crucial parts of operating. Usually, this finance comes from two sources, equity, and debt. Combined, they constitute a company’s capital structure. This structure allows companies to decide the ratio between equity and debt finance. Companies can also obtain finance from other sources, for example, hybrid instruments, etc. …
7 Reasons Why Financing Is Important (2022 Guidance) Read More »
When buying a car, individuals will encounter various financing options. Usually, every car dealer, broker or supermarket offers a finance scheme. Each program comes with its advantages and disadvantages. Buyers can choose the option that best suits their needs. Apart from those needs, a crucial factor in the decision is the costs associated with each …
Can a Car Dealership Refuse Outside Financing and Make You Use Their Financing? Read More »
When choosing a career path, private equity firms are a great choice. Usually, these companies provide a clear and concise growth path that candidates can choose. On top of that, private equity firms can grow significantly in size over time. It allows most employees to grow with the company. On top of that, they can …
Investors looking to invest in various securities can do so individually. Usually, they can identify a market or investment class and acquire assets within it. By doing so, they can control their investments and trade when they want. Moreover, investors can use apps or software that help them in the process. This process is accessible …
Asset Management Firm Vs. Private Equity Firm: What is the Difference? Read More »
Investors can choose between various investments in the market that can provide returns. Each of these assets comes with some risks as well. Usually, investors manage their portfolios themselves. However, some investors may also pool their funds together. This way, they can hire a manager to handle their investments. These investments may come in various …
How Do Private Equity Firms Make Money? All You Need To Know Read More »
A bond is considered a fixed-income debt instrument that provides finance to companies and issuers. In most cases, these instruments come with a fixed interest rate. However, some may also come with a floating rate. Either way, bonds allow companies to raise finance. In exchange, it provides the investor with the right to receive interest …
What are Bonds Payable? Are they Current or Non-current liabilities? Read More »
Companies use assets for various purposes, primarily including the generation of revenues. These assets include resources owned or controlled by a company. Similarly, these resources result in an inflow of economic benefits in the future. They consist of inventories, cash, accounts receivables, and fixed assets. Of these, the fixed assets constitute a significant portion of …
Accounting for Borrowing Costs (Journal Entry and Example) Read More »
A company’s capital structure represents the combination of equity and debt finance it uses. Usually, the former includes money collected from shareholders by issuing shares. These shares may consist of both ordinary and preferred stock. On top of that, equity also consists of retained earnings and other reserves. This finance source is long-term compared to …
A bond is a fixed-income instrument that allows companies to receive funds. On the other hand, it provides the acquirer with the right to obtain fixed interest payments in the future. In practice, however, bonds are more complex than that. These instruments come from multiple sources, for example, companies, local governments, etc. However, they hold …
How to Calculate Bond Premium or Discount? (Explained) Read More »
Companies raise finance through several sources. One of these includes bonds, which are fixed-income instruments. For companies, these represent debt finance, which can help fund operations. Bonds are also interest-bearing instruments that can result in interest charges in the financial statements. These instruments provide an alternative method of obtaining finance apart from equity. However, it …
How Do You Calculate the Carrying Value of a Bond? Read More »
