by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Private Investment in Public Equity?A private investment in public equity (PIPE deal) is when a public company sells some of its shares (either common shares or preferred shares) directly to private investors – rather than selling the shares to the...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is an Operating Budget?First of all, a budget is a plan to spend money. Therefore, it follows that budgeting is the process of creating that plan on how the money will be spent. Within the budget, business entities will account for all costs and necessary...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Payment-In-Kind?When we use products or services to make a payment in place of cash, it is said to be a PIK (Payment-in-Kind). It also means a financial tool that makes payment of dividends or interest to the stockholders of notes, certificates, bonds, and...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Payback Period?The payback period is the time it takes to recover the money invested in a project or investment. It does not take into account the time value of money or the expected rate of return. To incorporate these metrics, it is better to employ other...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Levered Beta?In a Capital Asset Pricing Model (CAPM), the risk of holding a stock, calculated as a function of its financial debt vs. equity, is called Levered Beta or Equity Beta. The amount of debt a firm owes in relation to its equity holdings makes up...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Intrinsic Value?The estimated value of tangible as well as intangible resources is known as the intrinsic value of a business or a company. These resources are determined with the help of basic research or analysis. This value is also known as the true value...
