Tag: capital

ROCE (Return on Capital Employed)

See Also: ROE (Return on Equity) ROIC (Return on Invested Capital) ROCE (Return on Capital Employed) Definition ROCE stands for Return on Capital Employed; it is a financial ratio that determines a company’s profitability and the efficiency the capital is applied. A higher ROCE implies a more economical use of capital; the ROCE should be

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5 Cs of Credit – How to Be More Credit Worthy

Are you credit worthy? Right now, is your credit good enough for a lender to give you a loan or line of credit today? If your answer is no or if your not sure of your answer, take a look at the 5 Cs of Credit. This 5-point checklist allows loan officers to easily determine

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Hiring an Investment Banker?

Since the economic recession that started in 2007, many people have perceived investment bankers negatively. The recession was caused in great part by the careless and unwise actions of investment banks and their regulators. Despite the negative impression people have of investment bankers, they are extremely beneficial for the economy and for individuals and companies

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What is Investment Banking?

See also: What Your Banker Wants You To Know Alternative Forms of Banking Debt Compliance 101: Keep Your Banker Happy Manage Your Banking Relationship What is Investment Banking? What is investment banking? In this article, you will learn the investment banking definition, about investment bank analysts, about investment bankers as executors, and examples of investment

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Return on Invested Capital (ROIC)

See Also: Return on Equity Analysis Required Rate of Return Return on Asset Analysis Financial Ratios Weighted Average Cost of Capital (WACC) Return on Capital Employed (ROCE) Return on Invested Capital (ROIC) Definition The return on invested capital is the percentage amount that a company is making for every percentage point over the [Cost of

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What Lenders Look At?

See Also: Relationship With Your Lender What Does a Lender Want to Know Don’t Tell Your Lender Everything Due Diligence on Lenders Finding the Right Lender   I recently spoke to students at the University of Houston in the Wolff Center for Entrepreneurship on the topic of Dealing with Lenders. During the question and answer

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Why Venture Capital?

See Also: The Dilemma of Financing a Start-up Company Angel Investor Mezzanine Debt Financing What is a Term Sheet Working Capital Why Venture Capital? Why venture capital versus other forms of equity? For one, VC partners tend to be experienced entrepreneurs themselves who have taken a startup from inception to an exit through an IPO

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Venture Capital

See Also: Every Business Has A Funding Source, Few Have A Lender Don’t Tell Your Lender Everything Due Diligence on Lenders The Relationship With Your Lender What Does A Lender Want To Know? Venture Capital Definition The Venture Capital definition is a funding source for start-up businesses or turnaround businesses. There is typically more risk

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Progress Billing Example

Find a progress billing example below. The Progress Billing Example UNCONDITIONAL FINAL WAIVER AND RELEASE OF LIENS AND CLAIMS OWNER: Business X, LLC. PROJECT NAME: PRIORITY MANAGEMENT For and in exchange of the sum of $, the sufficiency of which is hereby acknowledged, the undersigned Contractor, subcontractor, consultant, materialmen or laborer (hereinafter the “Undersigned”) warrants

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Mezzanine Debt Financing (Mezzanine Loans)

See Also: Recapitalizing Your Company Using Mezzanine Financing Angel Investor Venture Capitalist Why Venture Capital What is a Term Sheet What is Mezzanine Debt Financing (Mezzanine Loans)? Mezzanine debt financing is a subordinated and unsecured loan which typically features a warrant. This type of debt has higher interest rates because of its subordinated and unsecured

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Initial Public Offering (IPO)

See Also:Finance Beta DefinitionStock Options BasicsEmployee Stock Ownership Plan (ESOP)Blue Sky LawsSubscription (Preemptive) Rights Initial Public Offering (IPO) Definition An Initial Public Offering (IPO) is the process of selling a company’s stock to the public for the first time. Before the IPO the company is private; after the IPO the company is public. The IPO

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Financial Leverage

See Also: Finance Beta Definition Finance Derivatives Hedge Funds Hedging Risk Financial Ratios Financial Leverage Definition In finance, leverage refers to using borrowed capital or financial derivatives to magnify the results of an investment. The value of a leveraged investment is greater than the value of the original capital contributed by the investor. When leveraging an investment,

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