What is 'Canadian Investor Protection Fund - CIPF' A Canadian not-for-profit organization set up by the investment industry designed to protect investors from the bankruptcy of an individual investment firm. Accounts are covered for up to...
DefinitionIn finance, the acid-test or quick ratio or liquidity ratio measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately. Quick assets include those current assets that...
DefinitionThe National Bank Surveillance System is a computerized, off-site monitoring system developed by the U.S. Office of the Comptroller of the Currency "to assist in the early detection of problem banks and bank management," for the purpose of initiating...
What is the formula for calculating EBT?
Question: Which of the following formulas is NOT a formula used to calculate Earnings Before Tax (EBT)?
EBT = Sales Revenue – COGS – SG&A – Depreciation and Amortization.
EBT = EBIT –...
DefinitionKarl Hans Albrecht was a German entrepreneur who founded the discount supermarket chain Aldi with his brother Theo. He was for many years the richest person in Germany. As of February 2014, he was ranked as 21st-richest person in...
DefinitionThe weighted average cost of capital is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital....
What is 'Earnings Before Interest After Taxes - EBIAT'
Earnings before interest after taxes (EBIAT) is a financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT, measures a company's profitability without...
What is the 'Uncovered Interest Rate Parity - UIP' The uncovered interest rate parity (UIP) is a parity condition stating that the difference in interest rates between two countries is equal to the expected change in exchange...
Definition
When it comes to pricing an item, the greater fool hypothesis asserts that the price is decided not by its inherent worth, but rather by the irrational beliefs and expectations of market players. In the event that a reasonable...
What is a ‘Targeted Accrual Redemption Note – TARN'
A targeted accrual redemption note (TARN) is an investment vehicle, calculated based on a variation of the LIBOR formula, which provides a guaranteed sum of coupons. Once the coupons you've received...