by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Lintner’s Model?John Virgil Lintner, Jr., a professor at the Harvard Business School in the 1960s proposed the Lintner’s model for corporate dividend policy called the “Lintner’s dividend policy model”. It proposes that, a...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Leveraged Buyback?Leveraged buyback is an instrument used in corporate finance to carry out a transaction where a firm uses debt to repurchase part of its shares from the open market. Another term for the leveraged buyback is to share repurchase. Note that...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Leveraged Recapitalization?Leveraged recapitalization can be defined as a strategy whereby an organization takes on additional debt so as to pay out large dividends or repurchase shares. It is also defined as a process in which a company’s capital...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Levered Free Cash Flow?Levered free cash flow is important as it is the sum of money paid to shareholders or spent on other investments. It is the amount of money or transaction balance available to a company after satisfying all financial obligations. When...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Relative Valuation Model?A type of business valuation method that analyzes the value of a company to the value of its competitors or industry peers in order to determine the financial worth of such a company is termed the Relative Valuation Model. It makes...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is an Asset-Based Approach?An asset-based approach is a way of determining the value of a business giving focus to the net asset value which is calculated by deducting total liabilities from total assets. There could be some challenges of deciding which of the...
