How to Calculate Unlevered Beta in the CAPM Model
An Unlevered beta is a measure of systemic risk that removes the effect of debt. It measures how sensitive a stock is to its market. It is often used in the CAPM model to calculate BEA's cost of equity. Let's explore this measure. How do we calculate it? Let's begin by defining unlevered beta. A stock with a high...
How to Recharacterize Your IRA Contributions
If you want to move your IRA from one account to another, recharacterization can be your solution. By following these steps, you can move your funds to a new account, while retaining the same IRA provider. You can recharacterize your contributions online, using a standard form from your IRA custodian. Remember to report the new account on your tax...
Liquidation Preference
1.0x Liquidation Preference For Series A Preferred Stock In the world of venture capital, a primary economic term is liquidation preference. This term describes the method by which investors' claims on dividends and other distributions are queued. Typically, liquidation preference applies to Series A preferred stockholders. Here are the benefits of 1.0x liquidation preference for Series A preferred stockholders. Moreover,...
Boom and Bust Cycle
What is the boom and bust cycle The boom and bust cycle is a pattern of economic growth and contraction that repeats itself approximately every 10 years. The cycle is characterized by a period of rapid economic expansion, followed by a brief period of slower growth, then a period of recession or depression. The boom and bust cycle is caused...
Total Liabilities
The Balance Sheet and Trial Balance A balance sheet is a financial statement that shows the assets and liabilities of a company. For example, Sally's Sweaters has $5,000 in the bank and another $5,000 in accounts receivable. She also owns $2,000 in equipment and $3,000 in raw materials. Considering the amount of these assets and liabilities, the business should have...
Unqualified Opinion
An unqualified opinion is a warning sign that indicates an audit has found a company has not followed generally accepted accounting principles. This report is issued by an auditor who has examined the company's financial statements. It is the auditor's way of demonstrating that the company is operating in compliance with the law. An unqualified opinion is also known...
Option Premium
What is Option Premium An option premium is the price of an options contract. It is the price that the buyer pays to the seller for the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date. The premium is also affected by factors such as time to...
3 Types of Payroll Taxes You Should Know About
Payroll taxes are the taxes employees and employers must pay to the government based on their earnings. The earnings will include standard salary or wages, tips, bonuses and any supplemental income from employer to employee. The employee will typically pay payroll taxes via a payroll deduction and the employer will match their contribution and pay it directly to the IRS....
The Liquidity of the Crypto Market Explained
Crypto is one of the most misunderstood assets in this world. Sure they may have a higher trading volume than almost all of the most traded commodities combined, but when it comes to solid expertise and know-how, good information can be extremely limited. If you are familiar with liquidity, then you already likely know just how important it is when...
How Can I Finance A Pool Table ?
A pool table might prove to be beneficial for public events. It might create an atmosphere for something like a family gathering, a get among friends, or a celebration. The snooker game is a form of amusement that brings people together. It can be a conversation starter that will give opportunities to make new friends. Paying for Your Pool Table If...