by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Absolute Percentage Growth?An Absolute percentage growth refers to the rate of increase in the value of an asset. It refers to the appreciation in value of an asset or stock displayed as a percentage. It is also called absolute return or absolute growth. This...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Capital Budgeting?Capital budgeting refers to the process in which a business ascertains and evaluates possible large investments or expenses. These investments and expenditures comprise projects like investing in a long-term venture or building a new...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Abnormal Earnings Valuation Model?The abnormal earnings valuation model is also called the residual income model. This is an accounting model used in evaluating the financial status of a company. This valuation model determines the equity value that a...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What are the Actual Deferral Percentage & Actual Contribution Percentage TestsThe Actual Deferral Percentage/Actual Contribution Percentage simply refers to two separate 401 (k) nondiscrimination plan tests. ERISA and the IRS require that a 401K pass these tests...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is an Accrual Rate?Accrual rate refers to the interest percentage rate charged on financial instruments such as bonds, pension, credit card, and mortgage loans among other loans. Accrual rates vary according to the financial instrument. However, it is commonly...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a CAPE Ratio?The CAPE ratio is defined as a price earnings ratio that measures the average of adjusted earnings over a period of 10 years. It is a price valuation method that determines the real earnings per share (EPS) over a period of 10 years which is...
