What is Restricted Stock? A restricted stock award (RSA) refers to an award of stock to a person who is subject to conditions that must be met before the stockholder has the right to transfer or sell the stock. It is commonly issued to incentivize corporate officers such as directors and senior executives. Some of…
What is Capital Budgeting? Capital budgeting refers to the decision-making process that companies follow with regard to which capital-intensive projects they should pursue. Such capital-intensive projects could be anything from opening a new factory to a significant workforce expansion, entering a new market, or the research and development of new products. Whether such investments are…
High Low Method vs. Regression Analysis The high low method and regression analysis are the two main cost estimation methods used to estimate the amounts of fixed and variable costs. Usually, managers must break mixed costs into their fixed and variable components to predict and plan for the future. Learn more in CFI’s Math for…
What are Redundant Assets? Redundant assets are assets that generate income for the business but that are not essential to the normal operations of the business. In simple terms, they are assets that are owned by the company that do not contribute to the core operations and revenue-generating activities of the company. Redundant assets are…
What is Customer Conversion Rate? Customer conversion rate is the percentage of potential customers who take a specific desired action. In e-commerce or online marketing, it refers to the percentage of website visitors that perform a specific desired action on the website or landing page. The conversion action is usually a quantifiable action capable of…
What is a Credit Union SWOT Analysis? Performing a credit union SWOT analysis can help find key strengths, weaknesses, opportunities, and threats that the organization can use to redefine its strategies. SWOT analysis is a tool used to evaluate the external and internal environments of a company. It is useful in both decision-making and strategic…
What is Current Income (Real Estate Investments)? Current income is an investment strategy that gives investors exposure to consistent above-average payouts. The most common current income-focused investments are individual securities and real estate investments, which provide short-term payouts, as well as long-term investment appreciation. Real Estate Investment Trusts (REITs) Investors looking for regular income from…
What is NOI (Net Operating Income)? NOI is, arguably, the most foundational component of real estate valuation. Dividing a property’s NOI by the prevailing CAP rate (Capitalization Rate) for a certain property class in a given geography will provide an estimate of that property’s fair market value, sometimes referred to as FMV., e.g. $500,000 (NOI)…
