Archives: Resources

Cash Sweep

What is a Cash Sweep? A Cash Sweep is the compulsory use of excess cash flows to pay off outstanding debts, instead of distributing it to shareholders. Firms use borrowed money for expansion or to finance cash shortages, in which case new liabilities arise. Some debts are healthy (growth) while others could sink the business into…

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Drag Along Rights

What are Drag Along Rights? Drag Along Rights (also referred to as “drags” or drag-along provisions) are rights that give the majority owners the right to force minority owners to join in the sale of a company. The rights give the majority owners the ability to sell the entire company based on the terms and…

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Private Equity Funds

What are Private Equity Funds? Private equity funds are pools of capital to be invested in companies that represent an opportunity for a high rate of return. They come with a fixed investment horizon, typically ranging from 4 to 7 years, at which point the PE firms exit the investment. Exit strategies include IPOs and sale of…

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Protecting Excel Data

Protecting Excel Data Protecting Excel data in financial modeling is critical. Users prefer to secure and protect cells that they will not tweak or change while leaving certain cells free to adjust assumptions and inputs. By doing so, users are protected from potential inconsistencies and mistakes that may result from typos and unwanted changes in…

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Interpersonal Skills

What are Interpersonal Skills? Interpersonal skills are the skills required to effectively communicate, interact, and work with individuals and groups.  Those with good interpersonal skills are strong verbal and non-verbal communicators and are often considered to be “good with people”.  Whether in your career or personal life, these skills are important for success.    …

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HMO vs PPO: Which is Better?

HMO vs PPO: Which is Better? Getting the best healthcare often requires choosing between an HMO vs PPO. In at least one instance in our lives, we need to deal with some form of an illness or ailment. Few are of the more serious types that require the intervention of a qualified medical professional or…

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Audit Legal Implications

Understanding Audit Legal Implications Inaccurate or erroneous financial information cause audit legal implications. Auditors are responsible for making sure that all line items on financial statements are presented fairly. The audit reports ultimately affect the business decisions of banks, government, investors, and other business-related entities. Auditors, in a sense, are required by law to report…

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Business Life Cycle

What is the Business Life Cycle? The business life cycle is a progression of a business and its phases over time and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline. The cycle is shown on a graph with the horizontal axis as time, and the vertical axis as dollars, which represents…

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Option Pricing Models

What are Option Pricing Models? Option Pricing Models are mathematical models that use certain variables to calculate the theoretical value of an option. The theoretical value of an option is an estimate of what an option should worth using all known inputs. In other words, option pricing models provide us a fair value of an…

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Key Players in the Capital Markets

Who are the Key Players in the Capital Markets? In this article, we will provide a general overview of the key players and their respective roles in the capital markets. The capital markets consist of two types of market: primary and secondary.  This guide will provide an overview of all the major companies and careers…

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