Expected Rate of Return – Simple Definition, How to Calculate, Benefits and Perception of Financial Professionals

Introduction: The expected rate of return is considered as the most powerful solution for finding some useful probabilities to evaluate numerous return outcomes that our investments may provide afterwards. It should be in our best interest that probabilities are highly depending upon the investor and the kind of investment made in the markets. It follows … Read more

Discount Rate Definition – Practical Example of Discount Rate and Discount Rate Formula

Introduction: Discount Rate is the most common variable studied in the field of accountancy/business, as it encapsulates an interest rate marked over commercial banks and other financial institutions for the amount received over the behalf of Federal Reserve’s discount opening. It’s the same rate, which finance professionals use while generating ‘discounted cash flow’ and it’s … Read more

Understand Organizational Behavior

Introduction: Organizational Behavior is a pathway to study the impact over individuals, groups and numerous structures of the organization as a part of their human behavior within the company. According to a research, this includes a slight part about sociology, psychology and emotional intelligence, which exhibits the power of controlling and evolving people through emotions … Read more

Shareholders Equity and its Components

Introduction: The shareholder equity is a corporate practice which is showcased by investors and professional accountants in the companies to evaluate how an organization manages its investments and controls the amount of money which has been used through lending to understand the organizational valuation in the market. Over the years, finance professionals have understood that … Read more

Simple Example of Inventory Valuation

What is Inventory Valuation The finance professionals consider Inventory Valuation as the dollar amount which is linked with all the items associated within the company’s stock. We must solely focus on the amount since it’s considered as the cost of the mentioned items. Nevertheless, it is possible that due to some feeble situations or environmental … Read more

Compensating Balance and its benefits

Introduction: The finance professionals have labeled ‘compensating balance’ as the most minimal amount of balance that needs to be maintained in order to keep the account running. It should be in our best interest that compensating balances are commonly used to overcome the unbalanced portion of the expense that banks might experience when extending the … Read more