Are you an engineer considering a career shift to finance? You’re not alone. Many engineers have successfully transitioned into finance through the Valuation Master Class Boot Camp, a six-week intensive program designed to provide practical valuation skills and real-world experience.
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What Is Receivables Collection?
The receivable collection period is a period when a firm receives the amount owed by their customers.
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What Is Inventory Conversion?
The inventory conversion period is the timeframe that encompasses the process of obtaining the raw materials, manufacturing, to selling the product. It helps the firms estimate the timespan between the day raw materials are bought to the day the product is sold.
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What Is Quick Ratio?
The quick ratio is a liquidity ratio that measures a firm’s ability to pay its short term liabilities with its most liquid assets.
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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.
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What 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.
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What 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.
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What 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.
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What 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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What is the Gordon Growth Model?
The Gordon growth model, or GGM, is used to calculate the intrinsic value of a stock from future dividends. The model only works for companies that pay out dividends, which have a constant growth rate.
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