Stocks

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 ...

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 ...

Advantages & Disadvantages of a Business Going Public & Selling Stocks

Advantages & Disadvantages of a Business Going Public & Selling Stocks

Taking a company public means registering securities that can be sold to the public rather than to private investors. For many companies, going public confirms their place in the ...

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 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 ...

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 ...

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 ...

How to Calculate the Stock Dividends Distributable

How to Calculate the Stock Dividends Distributable

Dividends are payments that investors receive from a company in relation to the purchase of stock. Stock dividends are a type of dividend in which the company issues extra stocks ...

How to Calculate a Default Risk Premium

How to Calculate a Default Risk Premium

Though bonds should pay their principal and dividends when they mature, corporations that issue them might first declare bankruptcy, depriving investors of returns. This risk ...

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 ...

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 ...

Delisting Process for the NASDAQ

Delisting Process for the NASDAQ

For stocks listed on the NASDAQ exchange, the prospect of delisting presents a serious challenge. Delisted stocks often lose a substantial portion of their market capitalization ...

How to Solve for Equity Dividend Rate

How to Solve for Equity Dividend Rate

An equity dividend rate measures the annual cash flow an investment property generates before taxes as a percentage of the cash initially invested in the property. While an ...

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 ...

How to Calculate the Share Price Based off Dividends

How to Calculate the Share Price Based off Dividends

The dividend discount model values a stock based on its dividends. It uses a discount rate to convert all of the stock's expected future dividend payments into a single, ...

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 ...