by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is an Accrual Bond? A bond is a debt instrument issued by a debtor to a creditor evidencing the debt. It contains loan details, including the principal loan and the periodic interest payments to be made by the issuer to the bond holder. An accrual bond is a type...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Customer Lifetime Value? The life time value is regarded as an estimate regarding the average revenue that the company is going to generate from the customer during the lifespan of customer or company. The customer is attached to the company and spends money...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is No-Par Value Capital Stock?No Par Value stocks are issued without a par value mentioned either on the share certificate or in the issuer company’s prospectus. There is no minimum baseline for determining the value of such stocks, the prices are...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Capitalization of Earnings?Capitalization of earnings means that a company’s earnings are not distributed to owners; rather, they are maintained in the company for future use. As such, the earning are capitalized or become part of the company’s...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Recapitalization?Recapitalization is a financial strategy of readjustment of a company’s capital structure by exchanging one type of financing for other. It is generally done with an objective of optimizing leverage and stabilizing the capital finance...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is EBITDA Business Valuation Multiple?Valuation multiple refers to a ratio used to measure the value of firm. The EBITDA (Earnings before interest, tax, depreciation, and amortization) multiple specifically uses the company’s EBITDA to arrive at the...
