Talk About: -Horse Collar

question 5

Essay

Talk about:
-horse collar

Recognize the concepts of initial public offerings (IPOs) and private placement in business financing.

Understand the advantages and disadvantages of using personal capital and resources in business financing.

Learn about the potential impact of management capabilities and business success on securing financing.

Grasp the significance of strategic business planning and execution in attracting investment and securing loans.

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Definitions:

EVA

Economic Value Added, a measure of a company's financial performance based on residual wealth calculated by deducting cost of capital from its operating profit.

Company Tax Rate

The percentage of a corporation's profits that is paid to the government as tax.

WACC

Weighted Average Cost of Capital; a calculation that reflects the cost of a company's financing including both debt and equity.

Return on Investment

A financial ratio used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.