by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Fixed Amortization Method?The fixed amortization method is a method in which an account balance is amortized over a period of years and is equal to the life expectancy as required by the IRS. Through the fixed amortization method, a retiree can have early...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Q Ratio (Tobin’s Q)?The Tobins Q ratio is the ratio between the market value of physical assets and their replacement value or cost. The Tobins Q ratio was first proposed by Nicholas Kaldor, an economist in 1966. This ratio was further popularized by...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Capitalization Of Profits?Capitalization of profits refers to the conversion of a company’s retained earnings into capital stock which can be issued as a form of dividends to shareholders or additional stock shares. The retained earnings of a...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Cash-Flow Financing?Cash flow financing refers to a form of funding where you back a loan made to the company by the expected cash flow of that particular company. It is different from an asset-backed loan, where the loans collateral is based on the assets of...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Recurring Revenue?Recurring revenue refers to the specific percentage of an organizations revenue that persists in the coming years. Contrary to one-off sales, recurring revenues can be easily predicted, are consistent, and can be predicted to take place at...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Times-Revenue Method?The times-revenue method refers to a method of valuing a company. It applies multiples to current revenues to arrive at a valuation.How Does the Times-Revenue Method Work?Times revenue method is popular among individuals who own small...
