by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Hurdle Rate?A Hurdle Rate refers to the least rate of return expected on an investment or project. It is the minimum return that managers and investors expect on a project. The amount of risk present in an investment or project often informs the hurdle rate,...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Currency Option?A currency option is a type of contract that grants the buyer the right to purchase or sell an amount of a specific currency at a fixed exchange rate and on a particular date. A currency option only confers the right and not an obligation to...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Delta?Delta refers to a ratio that compares the extent of change in an assets price to the change in derivatives price. For instance, if the price of an underlying asset increases by $1, and the value of option increases by $0.65 for every share (provided...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Revenue Based Financing?Revenue based financing is a special type of fundraising for startup businesses from investors or VCs. Also referred to as royalty-based financing, investors in this system of financing usually get back their capital from shares of the...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Corporate Finance?In a firm or organization, corporate finance is that part of the business which focuses solely on financial and investment decisions. This department is primarily concerned with the maximization of shareholder value via short and long term...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Cost of Living Adjustment?Cost-of-living adjustment is made to Social Security and Supplemental Security Income to cancel out the possible aftermath of inflation. Simply referred to as COLA, this measurement is basically equivalent to the percentage increase...
