Cost of Debt
What is the Cost of Debt? The cost of debt is the return that a company provides to its debtholders and creditors. These capital providers need to be compensated for any risk exposure that comes with lending to a company. Since observable interest rates play a big role in quantifying the cost of debt, it is...
Contract for Difference (CFD)
What is a Contract for Difference (CFD)? A Contract for Difference (CFD) refers to a contract that enables two parties to enter into an agreement to trade on financial instruments based on the price difference between the entry prices and closing prices. If the closing trade price is higher than the opening price, then the...
Macrofinance
What is Macrofinance? Macrofinance targets widespread benefits to a section of the economy or the whole economy. It is tailored to fulfill all the financial obligations of the economy and find solutions to meet the obligations. To achieve said obligations, governments must draft policies, develop plans for subsidies, and engage in multi-year expansion strategies. In...
Financial Analysis Ratios Glossary
Financial Analysis Ratios Glossary Below is a glossary of terms and definitions for the most common financial analysis ratios terms. When calculating financial ratios using vertical and horizontal analysis, and ultimately the pyramid of ratios, it’s important to have a solid understanding of basic terms. The below information is taken from CFI’s Financial Analysis Fundamentals...
Rights Issue
What is a Rights Issue? A rights issue is an offering of rights to the existing shareholders of a company that gives them an opportunity to buy additional shares directly from the company at a discounted price rather than buying them in the secondary market. The number of additional shares that can be bought depends...
