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Opportunity cost of capital definition

Accounting Tools

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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Rule of 69 definition

Accounting Tools

Related Courses Corporate Finance Essentials of Business Math Financial Analysis What is the Rule of 69? The Rule of 69 is used to estimate the amount of time it will take for an investment to double, assuming continuously compounded interest. to the result.

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Leverage definition

Accounting Tools

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Articles Leverage Ratios Leveraged Lease This issue can be mitigated by restricting the amount of debt that a business takes on, as well as by maintaining a reasonable cash reserve.

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Reverse leverage definition

Accounting Tools

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Article Leverage Ratios After one year, he finds that the actual net after-tax return on his purchase of the manufacturing company is just 3%.

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Annualized rate definition

Accounting Tools

Related Courses Corporate Finance Financial Analysis What is the Annualized Rate? The annualized rate is the computed amount of return that would be realized if a short-term investment were to be extrapolated for a period of one year.

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Accounts Payable: How Will Your Role Change?

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In the dynamic landscape of corporate finance, the role of accounts payable (AP) professionals are evolving rapidly. Enhancing Financial Analysis and Reporting In 2024, AP professionals will play a more strategic role in financial analysis and reporting, providing valuable insights and recommendations to senior management.

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Risk-adjusted discount rate definition

Accounting Tools

Related Courses Corporate Finance Financial Analysis Treasurer's Guidebook What is the Risk-Adjusted Discount Rate? The risk-adjusted discount rate is based on the risk-free rate and a risk premium.