by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Price-to-Equity Ratio?The Price to Equity Ratio, also known as the Price to Book Ratio, compares a company’s market value to its book value. This is calculated by dividing price per share by book value per share( BVPS). Price to Equity = Price Per...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Chartered Asset Manager?Chartered Asset Managers are professionals who are skilled in asset management. These sets of professionals are certified by an accredited institute, especially the American Academy of Financial Management (AAFM). CAM is also a...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Chartered Business Valuator?Chartered Business Valuator is granted by the Canadian Institute of Chartered Business Valuators, a body of Chartered Business Professionals. The institute sets guidelines and standards that not just govern Canadian professionals...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Capital Dividend?A Capital Dividend is a dividend paid to shareholders of a corporation. The dividend funds come from the capital that was contributed to the company in exchange for an ownership interest. The funds do not come from profits or operational...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Book-to-Market Ratio?The book-to-market ratio is a ratio used to determine the value of a company by comparing its book value to its market value. The market value of a company is derived from the value (price) of its stock in the market while the book...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Traditional Theory Of Capital Structure?The Traditional Theory of Capital Structure is a theory that posits that for an optimal capital structure to exist, the weighted average cost of capital (WACC) must be at a minimum level while the market value of the...