Corporate Finance describes methods and procedures for capital budgeting. A major concept in corporate finance is the time value of money. Discounted cash flow is a primary tool in corporate finance.
Inflation Rates, Real Returns and Nominal Returns Last Update: February 14, 2024 Inflation Let’s derive an equation showing the relationship between Real Returns and Nominal Returns. But first, we need to define what economic inflation means. Inflation is the general increase in price levels. Inflation could be caused by central bank monetary policies like reducing interest rates […]
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Last Update: February 14, 2024 Introduction The Time Value of Money (TVM) Concept states that money tends to lose its value (purchasing power) over time. TVM concepts are ubiquitous in our world. Financial companies as well as individuals use TVM concepts and methods to make various financial decisions. For example: Deciding which corporate project or
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Last Revision: February 2, 2024 Introduction You need to learn a little bit of accounting. It involves keeping track of the “numbers” and trying to understand them to gauge/track performance and make future plans. Your personal budget and financial plan is all about accounting, as well as the businesses you invest in and perhaps even
Last Revision: August 31, 2022 Introduction In this post, I’ll provide a basic description of corporate stocks and bonds. I’ll first introduce them in the context of the overall cash flow in a corporation, and then I’ll provide some key characteristics for each. Why should we care about this? Why is this important? Well, humans own,
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Introduction This article defines Capitalism and its tools of implementation: Economics, Finance, and Accounting. Economics, Finance, and Accounting explain the flow of money and assets in society. Corporations, the engines of growth in capitalistic systems, utilize these concepts/tools/techniques to maintain and increase our standard of living. Similarly, individuals can use a baseline understanding of these
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How to Use This Financial Glossary As the gentle reader explores the financial posts on wymhacks.com (or any other site for that matter), he/she can refer to this Financial Glossary to gain additional clarity and insight. I recommend you go to Investopedia for additional definitions and details on financial terms.
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