Explained: How to Calculate Weighted Average Cost of Capital (WACC) in Valuation
In finance and investing, WACC stands for Weighted Average Cost of Capital. WACC is a very important number because it plays a huge part in the valuation of companies and projects.
What Is A Capital Raising and Entitlement Offer?
A capital raising on the share market typically means a company is selling more shares to existing or new investors. This often takes the form of a pro-rata entitlement offer, SPP or institutional offer.
What Is A Mortgage Offset Account?
If you’re a homeowner, first home buyer, or even an investor, consider talking to your bank about activating an “offset account”.
How Short Selling Works (Finance)
In finance, short selling or just “shorting” is betting that something will fall in price. In this video we explain how it works using a simple example.
What Are ‘Growth’ And ‘Defensive’ Assets And Investments?
Defined: ‘Growth’ And ‘Defensive’ Assets And Investments. Generally speaking, growth assets are higher risk and higher reward investments. Defensive assets are lower-risk lower-reward.
The Difference Between Cash And Accrual Accounting
While cash accounting might “make more sense” for a very small business or one that is just starting out, once the business starts to grow an accountant can help you take care of the rules under accrual accounting — and may even help you minimise your tax bill!
Earnings Defined And What Is The Difference Between Profit, Earnings And Revenue?
Earnings is another word for profit, but what makes it confusing is how people use it. Typically, revenue is the same thing as “sales” or the “top line”. They all appear at the top of the income statement.
What’s Your Number?
Instead of getting overwhelmed about financial milestones and goals, use a trick from weight loss experts and think in terms of systems.
What is Depreciation & Amortisation?
What is depreciation and amortisation? How is depreciation different to amortisation, and what does accelerated depreciation mean?
What is a bond?
In finance, a bond is a contract between a business which needs money (e.g. to fund their growth) and an investor who wants to receive an income stream plus their cash back in time.
Better Than Warren Buffett: How $10k Becomes $500m
Better than Warren Buffett. Turning $10k into $500m isn’t easy. Is this man the BEST investor ever to walk the earth?
What is Revenue?
Revenue is what you sell. It is the money that you get for selling a product (e.g. books) or services (e.g. hairdressing).