Posts Tagged ‘finance’
What Is Current Ratio?
The current ratio or working capital ratio is a liquidity ratio that measures a firm’s ability to pay its short term liabilities. Short term liabilities are debts or any obligation that is due within one year.
Read Full PostWhat Is Risk Assessment?
Risk assessment is an evaluation method used to understand an investor’s risk rating which helps them come up with a suitable investment strategy to achieve their financial goals.
Read Full PostWhat is the Agency Problem?
Within corporate finance, the agency problem is considered as the conflict of interest between the company’s managers and its stockholders.
Read Full PostWhat Is Arbitrage Pricing Theory?
The Arbitrage Pricing Theory is a method used to estimate the returns on assets and portfolios. It is a model based on the linear relationship between an asset’s expected risk and return.
Read Full PostWhat is the Modigliani–Miller Theorem?
The Modigliani-Miller Theorem suggests that a company’s capital structure and the average cost of capital does not have an impact on its overall value.
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