Tag: value

Proforma Invoice

See Also: Proforma Earnings Proforma Financial Statements Credit Letter Balance of Payments Proforma Invoice Example Product Cost Proforma Invoice Definition Proforma invoice, defined as an invoice which is sent to a customer before they receive product, has more than one use. For customers it serves two main purposes. First, a proforma invoice allows customers to

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Profitability Index Method

See Also: Profitability Index Method Formula Net Present Value Method Net Present Value versus Internal Rate of Return Time Value of Money Adjusted Present Value (APV) Method of Valuation Future Value Profitability Index Definition Profitability index method measures the present value of benefits for every dollar investment. In other words, it involves the ratio that

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Price to Sales Ratio Analysis

See Also: Price Earnings Ratio Price to Book Value Ratio Financial Ratios Price to Sales Ratio Analysis Definition Price to sales ratio (PSR ratio) indicates how much investor paid for a share compared to the sales a company generated per share. It measures the value placed on sales by the market. A higher ratio means

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Price to Book Value Analysis

Price to Book Value Analysis Definition Price to book ratio analysis (PBV ratio or P/B ratio) expresses the relationship between the stock price and the book value of each share. In general, the lower the PBV ratio, the better the value is. However, the value of the ratio varies across industries. A better benchmark is

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Par Value of Bonds

Par Value of Bonds Definition The par value of bonds definition refers to the principal – the amount of money the bondholder receives when the bond matures. Par value is also called face value or nominal value. It is the amount stipulated in the bond contract. However, par value does not include interest payments. Bond

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Periodic Inventory System

See Also: Perpetual Inventory System Just in Time Inventory System Economic Order Quantity (EOQ) Days Inventory Outstanding Analysis How to manage inventory Periodic Inventory System Definition A periodic inventory system or the periodic inventory method is an accounting method in which you determine the amount of inventory at the end of each accounting period or

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Opportunity Cost Article

See Also: Opportunity Costs Capital Budgeting Methods Opportunity Costs In Your Decision Making Opportunity Cost Decision Making An opportunity cost is a hypothetical cost incurred by selecting one alternative over the next best available alternative. Opportunity costs are relevant in business decision making. In addition, companies commonly use them when evaluating corporate projects. Opportunity Cost

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Nest Egg

See Also: How Factoring Can Make or Save Money How important is personal credit in negotiating a commercial loan? Payroll Accounting Accounting Concepts Marginal Costs Nest Egg Definition A nest egg is an amount of assets or cash put away for a certain cause or purchase like retirement. The assets are usually invested very conservatively.

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Negative Equity

See Also: Working Capital From Real Estate Asset Based Financing Loan Agreement Pledged Collateral Collateralized Debt Obligations Negative Equity Definition The negative equity definition is when the the value of a loan is more than the value of the assets used to collateralize the loan. In addition, negative equity loans usually occurs because the value of

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Mergers and Acquisitions (M&A)

See Also: Make-or-Buy Business Decision Company Life Cycle Company Valuation Return on Equity Financial Ratios Joint Venture (JV) Accretion Mergers and Acquisitions Basics Mergers and acquisitions (M&A) refer to the buying, selling, and combining of companies. In an M&A deal, two companies become one. M&A deals are typically facilitated by investment bankers. Before going through

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Is It Time To Find A New Bank?

See Also: Bankers’ Language is Financial Jargon Categories of Banks Finding the Right Lender Funding Source Versus Lender How to Manage Your Banking Relationship Interest Rate How To Find A New Bank? I am sure some of you are saying bankers are bankers and you really don’t value the relationship. That is a topic for

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Intrinsic Value of Stock Options

See Also: Finance Beta Definition Black Sholes Option Model Binomial Options Pricing Model Employee Stock Ownership Plan (ESOP) Subscription (Preemptive) Rights Intrinsic Value of Stock Options The intrinsic value of stock options is one of the factors – along with time value – that contribute to the value of a stock option. For an in-the-money

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