Input-Output Analysis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is an Input-Output Analysis?Input-output analysis (“I-O”) is a method of analysis in macroeconomics that observes the interdependencies between various sectors and industries in an economy. This form of macroeconomic analysis provides a breakdown of...

Cost-Push Inflation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Cost-Push Inflation?Cost-push inflation occurs when the total price level of goods rises as a result of an increase in wages and raw materials used in production. When there is a consistent demand for goods and there is a lower supply of these goods, then the...

Liquidity Coverage Ratio – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Liquidity Coverage Ratio?How Does the Liquidity Coverage Ratio Work?Estimating Total Cash OutflowsEstimating High-Quality Liquid Assets (HQLA)What Does the LCR Tell YouImplementation of the LCRHigh-Quality Liquid AssetsKEY...

Lintner’s Model – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is Lintner’s Model?John Virgil Lintner, Jr., a professor at the Harvard Business School in the 1960s proposed the Lintner’s model for corporate dividend policy called the “Lintner’s dividend policy model”. It proposes that, a...

Linder Hypothesis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Linder Hypothesis?The Linder hypothesis was proposed by Staffan Linder. The theory states that the more similarity a country shares in terms of total income generated, the more similarity they share in the consumption of products by consuming the same...

Levered Free Cash Flow – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is Levered Free Cash Flow?Levered free cash flow is important as it is the sum of money paid to shareholders or spent on other investments. It is the amount of money or transaction balance available to a company after satisfying all financial obligations. When...

Leveraged Recapitalization – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is Leveraged Recapitalization?Leveraged recapitalization can be defined as a strategy whereby an organization takes on additional debt so as to pay out large dividends or repurchase shares. It is also defined as a process in which a company’s capital...

Load (Mutual Fund) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Load in a Mutual Fund?A load is a sales fee paid by an investor when purchasing or redeeming shares in a mutual fund. This fee is divided into front end loads and back end loads, they are structured differently. Mutual fund company decides the fee to be...

Liquidity Preference Theory – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is a Liquidity Preference?Liquidity preference concerns the extent to which individuals prefer to be liquid in their asset holdings.What is the Liquidity Preference Theory?The Liquidity Preference Theory concerns the relationship between the interest rate (the...

Leveraged Buyback – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is a Leveraged Buyback?Leveraged buyback is an instrument used in corporate finance to carry out a transaction where a firm uses debt to repurchase part of its shares from the open market. Another term for the leveraged buyback is to share repurchase. Note that...