Stocks

How to Calculate Long-Term to Total Capitalization

How to Calculate Long-Term to Total Capitalization

"Total capitalization" is “the total long-term debt and all types of equity of a company that constitutes its capital structure,” according to the Duke ...

How to Calculate Internal Equity

How to Calculate Internal Equity

Internal equity, also known as retained earnings, are profits that a company reinvests in its own operations instead of distributing them to shareholders as dividends. The choice ...

Is Paid-In Capital More Important to an Investor?

Is Paid-In Capital More Important to an Investor?

Paid-in capital, also called contributed capital, is the money invested by stockholders when they buy shares of stock directly from a company in a private sale. This money ...

How to Calculate the ROE With Negative Stockholders Equity

How to Calculate the ROE With Negative Stockholders Equity

Investigating a company's return on equity (ROE) can help gauge a company's ability to invest its resources to produce profits. Shareholders invest money into the business by ...

Partnership Financial Statements Vs. Corporate Financial Statements

Partnership Financial Statements Vs. Corporate Financial Statements

All businesses keep financial records as a way of tracking the business's performance. Partnerships, which divide ownership of a business between two or more people, account for ...

How to Calculate the Number of Shares in a Firm

How to Calculate the Number of Shares in a Firm

There are two basic types of stock: common stock and preferred stock. When a company incorporates, it authorizes a certain number of shares of common and preferred stock. This is ...

How to Mitigate Foreign Exchange Rate Risk

How to Mitigate Foreign Exchange Rate Risk

Companies that conduct transactions across international lines are exposed to the risk associated with dealing in foreign currencies. It is the risk that a company doing business ...

A Comparison of Financial Ratio to Industry Average

A Comparison of Financial Ratio to Industry Average

Analysts, company management and lenders use financial ratios to assess a firm's financial health and operational efficiency. Financial-ratio analysis performed throughout the ...

Describe the Five Steps to Capital Budgeting

Describe the Five Steps to Capital Budgeting

Capital budgeting involves deciding what new projects a company should invest in. Business owners strive to determine which projects would yield the most return over a given ...

Corporate Portfolio Analysis Techniques

Corporate Portfolio Analysis Techniques

A corporate portfolio analysis is similar to the kind of scrutiny you apply to your personal portfolio. You look at the various investments and gauge their individual performance, ...

Top 5 Financial Concepts in Accounting 101

Top 5 Financial Concepts in Accounting 101

Financial accounting is a complicated subject with many principles that companies use to manage their financial accounting process. However, even with its complexity, individual ...

Difference Between Strategic & Financial Mergers

Difference Between Strategic & Financial Mergers

True mergers are very rare. In most mergers, one company usually ends up having greater control or influence over the other one in the combined entity. A true merger results in ...

The Relationship Between Value Maximization and Stakeholder Theory

The Relationship Between Value Maximization and Stakeholder Theory

Value maximization and stakeholder theory are two methods of determining the goals of a business. Under strict value maximization, managers only consider whether a decision ...

Advantages & Disadvantages of Paying Cash Dividends

Advantages & Disadvantages of Paying Cash Dividends

When a publicly traded company earns a profit, it has the option of of sharing its profits with its shareholders through the payments of cash dividends. Many companies whose ...

How to Calculate Unlevered Cost of Capital

How to Calculate Unlevered Cost of Capital

Companies raise capital by either raising debt or raising equity. To raise debt, the company borrows money, and to raise equity, it issues new stock. The firm's levered cost of ...

How Are Financial Statements Different in Different Industries?

How Are Financial Statements Different in Different Industries?

Both for-profit and nonprofit businesses use three basic types of financial statements -- the balance sheet, profit and loss statement and cash flow statement -- to help make ...

What Happens After the Offering of Common Stock & Warrants?

What Happens After the Offering of Common Stock & Warrants?

Issuing stock through an initial public offering is one of the key steps in a company's growth, But while an IPO represents the end of a long, complex process, it is also the ...