Invested capital is the investment made by both shareholders and debtholders in a company. When a company needs capital to expand,| Corporate Finance Institute
EPS is a financial ratio, which divides net earnings available to common shareholders by the average outstanding shares over a certain period of time.| Corporate Finance Institute
The treasury stock method computes the number of additional shares that can possibly be created by un-exercised, in-the-money warrants and stock options.| Corporate Finance Institute
The beta (β) of an investment security (i.e., a stock) is a measurement of its volatility of returns relative to the entire market. It is used as a measure of risk and| Corporate Finance Institute
Cost of Equity is the rate of return a shareholder requires for investing in a business. The rate of return required is based on the level of risk associated with the investment| Corporate Finance Institute
Capital structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its assets. A firm's capital structure| Corporate Finance Institute
A forced sale value is the estimate of the amount that a business would receive if it sold off its assets one piece at a time during an unforeseen or uncontrollable event.| Corporate Finance Institute
The discount for lack of marketability (DLOM) is applied to private companies when valuing them. It relates to the company not being publicly traded| Corporate Finance Institute
Many corporate finance books are available nowadays, covering various topics from beginner to advanced levels. Finance professionals can access a wide range| Corporate Finance Institute
Equity value can be defined as the total value of the company that is attributable to shareholders. To calculate equity value, follow this guide from CFI.| Corporate Finance Institute
The term market price refers to the amount of money for what an asset can be sold in a market. The market price of a given good is a point of convergence| Corporate Finance Institute
An Initial Public Offering (IPO) is the first sale of stocks issued by a company to the public. Prior to an IPO, a company is considered a private company, Learn what an IPO is| Corporate Finance Institute
Learn what a fairly valued security is, how to assess it using discounted cash flow (DCF) models, and why investor beliefs impact valuation.| Corporate Finance Institute
To qualify as a tax-free reorganization, a transaction must meet certain requirements, which vary greatly depending on the form of the transaction.| Corporate Finance Institute
Section 368(A)(1) outlines a format for US tax treatment of corporate reorganizations, as described in the Internal Revenue Code of 1986.| Corporate Finance Institute
Public company filings are an important source of data and information for financial analysts. This guide will outline the most common sources of public company filings.| Corporate Finance Institute
A platform company refers to the initial acquisition made by a Private Equity Group in a specific industry or marketplace. The acquisition acts as the starting| Corporate Finance Institute
Registration rights let investors compel a company to register shares with the SEC, enhancing liquidity and providing a potential exit strategy. Learn more.| Corporate Finance Institute
This guide takes you through all the steps in the M&A process. Learn how mergers and acquisitions and deals are completed.| Corporate Finance Institute
Knowledge engineering is a field of study that is responsible for all technical, societal, and scientific aspects involved in artificial intelligence (AI).| Corporate Finance Institute
Inelastic demand is when the buyer’s demand does not change as much as the price changes. When price increases by 20% and demand decreases by| Corporate Finance Institute
Download CFI's free Effective Annual Rate (EAR) calculator to compare interest rates with different compounding periods—ideal for loans and investments.| Corporate Finance Institute
Smart contracts refer to computer protocols that digitally facilitate the verification, control, or execution of an agreement.| Corporate Finance Institute
Explore CFI's free resource library of Excel templates, interview prep, and deep dives into the topics you need to know for a career in finance and banking.| Corporate Finance Institute
SEC filings are financial statements, periodic reports, and other formal documents that public companies, broker-dealers, and insiders are required to submit| Corporate Finance Institute
Calculate the Internal Rate of Return (IRR) using our free calculator. Understand IRR with our definition and formula to assess investment profitability.| Corporate Finance Institute
The risk-free rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.| Corporate Finance Institute
This guide shows you step-by-step how to build comparable company analysis ("Comps") and includes a free template and many examples.| Corporate Finance Institute
The cost of debt is the return that a company provides to its debtholders and creditors. Cost of debt is used in WACC calculations for valuation analysis.| Corporate Finance Institute
Net Working Capital (NWC) is the difference between a company's current assets (net of cash) and current liabilities (net of debt) on its balance sheet.| Corporate Finance Institute
This effective annual interest rate calculator helps you calculate the EAR given the nominal interest rate and number of compounding periods.| Corporate Finance Institute
The Rate of Return (ROR) is the gain or loss of an investment over a period of time copmared to the initial cost of the investment expressed as a percentage.| Corporate Finance Institute
Unlevered Beta (Asset Beta) is the volatility of returns for a business, without considering its financial leverage. It only takes into account its assets.| Corporate Finance Institute
The market risk premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.| Corporate Finance Institute
Equity risk premium is the difference between returns on equity/individual stock and the risk-free rate of return.| Corporate Finance Institute
Enterprise Value, or Firm Value, is the entire value of a firm equal to its equity value, plus net debt, plus any minority interest| Corporate Finance Institute
EBITDA or Earnings Before Interest, Tax, Depreciation, Amortization is a company's profits before any of these net deductions are made.| Corporate Finance Institute
The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of a security.| Corporate Finance Institute
Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.| Corporate Finance Institute
A hurdle rate, or minimum acceptable rate of return (MARR), is the minimum required rate of return or target rate that investors expect to receive on an investment.| Corporate Finance Institute
EV/EBITDA is used in valuation to compare the value of similar businesses by evaluating their Enterprise Value (EV) to EBITDA multiple relative to an average.| Corporate Finance Institute
Dive into career paths and job duties at professional financial services firms. CFI's interactive Career Map puts you on the path toward your dream job!| Corporate Finance Institute