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Opportunity cost of capital definition

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Related Courses Capital Budgeting Corporate Finance Financial Analysis What is the Opportunity Cost of Capital? The opportunity cost of capital is the incremental return on investment that a business foregoes when it elects to use funds for an internal project, rather than investing cash in a marketable security.

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Simple rate of return definition

Accounting Tools

Related Courses Capital Budgeting Corporate Finance Treasurer's Guidebook What is the Simple Rate of Return? The simple rate of return is used for capital budgeting analysis, to determine whether a business should invest in a fixed asset and any incremental change in working capital associated with the asset.

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Finance manager job description

Accounting Tools

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook The functions of the finance manager position can be considered identical to a treasurer position, or as a "light" treasurer who has additional analysis responsibilities that include support of the management team in a variety of operational decisions.

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Understanding the Root Causes of the US Accounting Resource Shortage

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87% of companies find it increasingly difficult to secure the right accounting talent for essential and core accounting functions like financial analysis, budgeting, and reporting. Understanding the Root Causes of the US Accounting Resource Shortage The result?

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Cost of preferred stock

Accounting Tools

Related Courses Capital Budgeting Corporate Finance What is the Cost of Preferred Stock? The cost of preferred stock is the stated dividend amount paid annually on each share of preferred stock , divided by the current market price of the stock.

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Weighted average cost of capital

Accounting Tools

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.

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The cost of debt

Accounting Tools

Related Courses Capital Budgeting Corporate Finance What is the Cost of Debt? The cost of debt is the after-tax effective rate paid by a borrower on its debt. The cost of debt comprises a portion of the total cost of capital of a business, of which the other parts are the cost of preferred stock and the cost of equity.