Reynolds Holding
DECEMBER 10, 2023
As a capital allocation decision, share buybacks intersect all three of the main corporate finance activities of investing, financing, and dividends [1]. Buybacks for Financing A company can alter the debt-to-equity ratio of its capital structure by issuing debt and/or buying back shares.
Valutico
APRIL 17, 2023
Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. The resulting WACC represents the average cost of all the types of capital a company uses to finance its operations.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Valutico
APRIL 17, 2023
Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. The resulting WACC represents the average cost of all the types of capital a company uses to finance its operations.
Valutico
APRIL 12, 2023
Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. The resulting WACC represents the average cost of all the types of capital a company uses to finance its operations.
Andrew Stolz
APRIL 3, 2020
Leveraged Buyout (“LBO”) is a quite common term in Corporate Finance field. It refers to acquiring a company (or its part) and financing it with debt. The buyer (the “sponsor”) raises debt and equity to acquire the target. The LBO ratios can go to 90% of debt and 10% of equity. Common Equity. Mezzanine debt.
Musings on Markets
FEBRUARY 27, 2023
To fund the business, you can either use borrowed money (debt) or owner's funds (equity), and while both are sources of capital, they represent different claims on the business. Even government-owned businesses fall under its umbrella, with the key difference being that equity is provided by the taxpayers.
Reynolds Holding
APRIL 17, 2022
The most innovative part of the economy, the venture capital (VC) market, has evolved structures to address these agency problems. A startup’s capital structure solves the motivation problem. Then in 2018, GM decided to experiment with a new structure. Cruise’s employees were granted equity in Cruise, not in GM.
Expert insights. Personalized for you.
45 
Let's personalize your content