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What Is Going to Happen with Inflation?

By Valuation Master Class Student

Many forces at work impact inflation. There are current trends that cause both inflationary and deflationary measures. Whether we’ll see inflation or deflation in the future depends on which of these forces dominate.

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what is inventory conversion

What Is Inventory Conversion?

By Andrew Stotz

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

What Is Quick Ratio?

By Andrew Stotz

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

What Is Current Ratio?

By Andrew Stotz

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

What Is Risk Assessment?

By Andrew Stotz

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

What is the Agency Problem?

By Andrew Stotz

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

What Is Arbitrage Pricing Theory?

By Andrew Stotz

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

What is the Modigliani–Miller Theorem?

By Andrew Stotz

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

What is the Gordon Growth Model?

By Andrew Stotz

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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what is modern portfolio theory

What is Modern Portfolio Theory and Portfolio Risk?

By Andrew Stotz

Modern Portfolio Theory is a theory presented in 1952 by Harry Markowitz on how risk-averse investors can create portfolios to maximize the return on investments based on the optimal levels of risk.

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