by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Capitalization?Capitalization refers to either: Capitalization – This is the process of funding a new venture. (Market Capitalization) the value of a company; it is the total amount of a company’s shares on the market or the total amount of...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Capital Expenditure?Capital Expenditure (CAPEX) is the amount of financial resources that a company uses to purchase capital goods with the aim of expanding the operational scope of the company. Examples of CAPEX include building a new plant or buying vehicle...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Capital Formation?Capital formation is the growth in the stock of actual capital in the economy over a particular financial period. In other terms, it means the creation of things that enhance more production. This term is mostly used in the study of...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Capital Structure?Capital Structure is a company’s or an organizations financial structure is its way of financing its operational costs or expansion. Most companies will resort to loans or shares. In this case, capital refers to the amount of money...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Bridge Financing?Bridge financing (normally a bridge loan form) is a temporary source of financing to companies and other business units to strengthen their Short-term state up to when a long term funding source works out. In most cases, Bridge financing...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is an Accounting Rate of Return (ARR)?The accounting rate of return represents the average net income which an asset is expected to generate divided by the average capital loss, expressed as an annual percentage or APR. This formula is used to make budgeting...
