Corporate Finance

In investing terms, the margin is the money borrowed by the investors for making an investment or transaction. Particularly in stock and derivative markets, the investors utilize leverage allowed by the broker and clearing houses. These clearing houses and brokers require investors to maintain a certain minimum balance in their margin accounts. What is the […]

Commercial papers are alternative short-term financing sources for the borrowers. Commercial papers are usually issued to raise funds outside of the primary markets i.e. the stock exchanges. What is Euro Commercial Paper? Euro Commercial Paper (ECP) is a short-term debt instrument that is issued in a currency other than the local currency of the issuer.

Over time we are witnessing the increasing trend in the global stock market investment.  People, who own money in a retirement plan or personal saving, always want to allocate finance in a scheme they feel better for them such as bonds, cash, and stocks. Millions of people do investment in the stock market to gain

Financial investments are an integral part of every individual. Different kind of investment is done all over the world to get maximum returns and profits. When an investor, invest capital the foremost thing they want to know is how much money they will expect to earn in the future based on the expected rate of

In this article, we cover the degree of total leverage. This includes the key definition, how to calculate the degree of total leverage as well as example and analysis. Before, jumping into detail, let’s understand some key relevant definitions. Definition Let’s understand some key definition of total leverage as well as the degree of total

In this article, we cover the degree of financial leverage. This includes the key definition, how to calculate the degree of financial leverage as well as example and analysis. Before, jumping into detail, let’s understand some key relevant definitions. Definition Let’s understand some key definition of financial leverage as well as the degree of financial

In this article, we cover the holding period return formula (HPR formula) and how to calculate the holding period return for a portfolio of investments. This includes the example and calculation of this return, its interpretation, and analysis as well as advantages and disadvantages of it. Let’s go through together! What is Holding Period Return

In this article, we cover how to calculate the dividend payout ratio. The Dividend payout ratio is one of the most important investor ratios. It provides an indicator of potential income for the investor with a stock. Investors looking for a regular income are particularly interested in the dividend payout ratio. What is Dividend Payout

Introduction The intrinsic value of a stock is different from its price in the stock market. This is mainly because other factors may also determine the value of a stock. Investors value stocks based on what they will be worth in the future rather than the stocks’ current market price. Therefore, the intrinsic value of

In this article, we will cover how to calculate discounted payback period. This will include the overview, key definition, example calculation, advantages and limitation of discounted payback period that you should know. Overview When businesses evaluate and appraise projects or investments, they consider two-factor evaluations. The rate of return on the investment and the time