Accounting Tools

JUNE 6, 2023

Related Courses Corporate Finance Financial Analysis Treasurer's Guidebook The after-tax cost of debt is the initial cost of debt , adjusted for the effects of the incremental income tax rate. The after-tax cost of debt is included in the calculation of the cost of capital of a business.

Tax 40

Tax Corporate Finance Financial Analysis Expense Reports 40

Accounting Tools

JUNE 7, 2023

Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is Financial Leverage? Second, interest expense is tax deductible in many tax jurisdictions, which reduces the net cost of debt to the borrower. Financial leverage is the use of debt to buy more assets.

Corporate Finance 75

Corporate Finance Financial Statements Tax Financial Analysis 75

Accounting Tools

SEPTEMBER 26, 2023

Related Courses Corporate Finance Governmental Accounting What is Equivalent Taxable Yield? Equivalent taxable yield is the effective interest rate that must be offered on a taxable bond instrument in order to arrive at the same after-tax yield built into a tax-exempt bond instrument.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

AUGUST 25, 2023

Related Courses Corporate Finance GAAP Guidebook What is a Holding Period? A holding period is the duration of an investment by an investor. It begins with the purchase date by the investor and ends with the sale date.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

FEBRUARY 12, 2024

To do so, he takes on a loan that has a net after-tax cost of 8%. After one year, he finds that the actual net after-tax return on his purchase of the manufacturing company is just 3%. Since he is generating a negative return of 5% on his investment, David has experienced negative leverage.

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

MARCH 2, 2024

Advantages of an Equipment Trust Certificate Equipment trust certificates may be employed because of the associated tax benefit; because the borrower does not have title to the asset, the borrower does not pay property taxes on it until the associated debt has been paid off. This represents a substantial deferral of tax payments.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

JULY 11, 2024

This tax exemption makes municipal bonds an especially attractive investment for individuals with a high incremental tax rate. Related Articles Discount Bond Income Bond Types of Bonds How Municipal Bonds Are Priced The market price of a municipal bond will vary with changes in the market interest rate.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

JANUARY 24, 2024

Second, interest expenses are tax deductible, which lowers the after-tax cost of debt financing. This means that a business generates a net gain in its income by using debt financing. Third, debt can be used to invest in activities that generate more income than the cost of the debt.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MARCH 28, 2024

If they had instead invested $200,000 and the business had borrowed $800,000 to still achieve total financing of $1 million, the return on investment would now be 50% (though the after-tax cost of debt must also be considered).

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

JANUARY 19, 2024

For example, national governments can issue debentures, because they can raise taxes to pay off their obligations. Related AccountingTools Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook Related Articles Debenture Bond Subordinated Debenture

Corporate Finance 40

Corporate Finance Billing Tax 40

Accounting Tools

AUGUST 8, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is a Bearer Bond? However, they are ideal for those investors who want their ownership of securities to remain anonymous, which is especially attractive for those trying to hide their income from tax authorities.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

JANUARY 2, 2024

Or, if the entity is a government, it cannot raise sufficient cash from taxes to pay for its bond obligations. Related AccountingTools Course Corporate Finance Types of Financial Risk There are several types of financial risk, which include those noted below. Related Articles Default Risk Timing Risk Transaction Risk

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MAY 15, 2024

There are also several advantages to term loans from the perspective of the borrower, which are as follows: Tax deductible. Depending on the situation, the interest paid on a term loan may be tax deductible. Credit score enhancement.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

AUGUST 3, 2023

Related Courses Corporate Finance Investor Relations Guidebook Public Company Accounting and Finance What is Shareholder Value? Further, they might engage in tax management ploys to pay less than the company’s fair share of taxes. Related Articles Shareholder Value Added Total Shareholder Return

Corporate Finance 40

Corporate Finance Financial Reporting Tax Accounting 40

Accounting Tools

JANUARY 24, 2024

Second, interest expense is tax deductible, so its net cost to the borrower can be comparatively low. And finally, if the borrower uses the funds to purchase assets that generate a reasonable return, it can earn a net gain over the cost of the funds acquired.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

JULY 11, 2024

The optimal capital structure of a business is the blend of debt financing and equity financing that minimizes its weighted-average cost of capital while maximizing its market value. Related Articles Capital Structure Analysis Complex Capital Structure Simple Capital Structure

Financial Analysis 40

Financial Analysis Corporate Finance Tax 40

Accounting Tools

NOVEMBER 2, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Middle Market Banking? Related Articles Boutique Investment Bank Bulge Bracket Bank Hedge Funds and How They Work The Difference Between Private Equity and Venture Capital

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

AUGUST 5, 2023

Related Courses Capital Budgeting Corporate Finance What is the Weighted Average Cost of Capital? The weighted average cost of capital (WACC) is a compilation of the aggregate financing cost of a business. In this calculation, each element of the firm’s financing cost is proportionately represented.

Corporate Finance 40

Corporate Finance Budgeting Tax Financial Analysis 40

Accounting Tools

MAY 7, 2024

Leaseback deals are most common in the real estate market, such as when a company sells its corporate headquarters and then leases it back. Related AccountingTools Courses Accounting for Leases Corporate Finance Treasurer’s Guidebook Advantages of a Leaseback There are multiple benefits associated with a leaseback.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

DECEMBER 20, 2023

Related AccountingTools Courses Corporate Cash Management Corporate Finance Investing Guidebook Understanding Convertible Securities Investors want the option to convert into common stock, so they are usually willing to accept a lower rate of return on the interest payments being made to them on the original convertible security.

Corporate Finance 40

Corporate Finance Financial Statements Tax 40

Accounting Tools

NOVEMBER 3, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is Trading on Equity? If a company generates a profit through this financing technique, its shareholders earn a greater return on their investments. And second, interest expense is tax deductible in many tax jurisdictions, which reduces the net cost to the borrower.

Corporate Finance 40

Corporate Finance Tax Financial Analysis 40

Accounting Tools

FEBRUARY 15, 2024

Related AccountingTools Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook Obtain an Interest Deduction The interest expense on bonds is tax deductible , so a company can reduce its taxable income by issuing bonds. This allows the company to lower its financing cost.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

JUNE 7, 2023

Related Courses Corporate Finance Financial Analysis What is the Cost of Capital Formula? To derive the cost of debt, multiply the interest expense associated with the debt by the inverse of the tax rate percentage, and divide the result by the amount of debt outstanding. Its incremental tax rate is 34%.

Financial Analysis 40

Financial Analysis Corporate Finance Tax 40

Counto

JANUARY 2, 2024

Taxation : Your SSIC code can affect your tax obligations. Certain tax incentives and exemptions are industry-specific, so having the right code is vital to optimise your tax position. This data is instrumental in policymaking, economic analysis, and strategic planning.

Computation 52

Computation Customer Service Corporate Finance Tax 52

Accounting Tools

AUGUST 28, 2023

Related Courses Corporate Finance Crowdfunding Treasurer's Guidebook What is Accounts Receivable Financing? Accounts receivable financing involves the sale of one’s accounts receivable in exchange for a working capital loan. The remaining invoices will be reviewed by lenders.

Account Receivables 40

Account Receivables Accounts Receivable Accounts Receivable Accounting 40

Accounting Tools

OCTOBER 20, 2023

Related Courses Crowdfunding Corporate Finance Treasurer's Guidebook Working Capital Management What is a Working Capital Loan? A working capital loan is intended to finance the day-to-day operations of a business, paying for such short-term investments as accounts receivable and inventory.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 40

IMA's Count Me

JULY 8, 2019

And during that process I wandered off and became an operations manager for a large logistics firm, got into corporate finance and then really felt the shortfall of my technical finance knowledge. And once I kind of finished the qualification, I went back and did my internship and articles in my late twenties.

Accounting 40

Accounting Accounting Corporate Finance Computation 40

IMA's Count Me

SEPTEMBER 4, 2019

Tax returns are important from a compliance point of view and all the rest. Now again, the audit function and the tax function are cornerstones of what we do. One, our role as corporate accountants, corporate finance folks going forward and the expectations of our clients, right?

Accounting 40

Accounting Accounting Corporate Finance CPA 40

IMA's Count Me

FEBRUARY 23, 2020

I mean, can you imagine if you're an accounting firm or if you're a corporate finance department not having access to your Sage files or your Intuit, here are your QuickBooks files for a week. So their clients, they don't want to just be filling out a tax return. Was it Strategic Finance? Like how would you function?

QuickBooks 40

QuickBooks Bookkeeping Computation Data Entry 40