IRRELEVANCE PROPOSITION THEOREM
A theorem on capital structure that assume financial leverage has no effect on the company’s value if income tax and distress costs are absent in the business environment. The theory was developed by American economists Merton Miller and Franco Modigliani, which was a premise to their Nobel Prize winning work The Cost of Capital, Corporation Finance, and Theory of Investment.
POPULAR TERMS
Current Rate Method
Process of translating all foreign currency holdings on a company’s balance sheet using the current exchange rate. This is the most broadly u ...
Amplitude
The amplitude is the price difference from the trough’s midpoint to the peak of a security’s midpoint. It is usually positive in bullis ...
Sunshine Laws
Laws requiring transparency in government by making meetings, votes, deliberations, and other actions to be made available for public. It also mand ...
Subjective Probability
Describing an individual’s personal judgment on the likelihood of a certain event’s occurrence. This probability has no formal computat ...
McDonough School of Business
Established in 1957, it is the business school of Georgetown University, which is located in Washington, DC. It offers both undergraduate and postg ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Digesting Financial Statements: Cash Flow
Companies generate money from borrowers and/or borrow money from creditors. Next, firms purchase assets and/or finance projects and programs. Then, ...
Connection of Inflation and Interest Rates
We cannot simply ignore the connectivity of inflation and interest rates. Both items are interrelated. So, whenever there is a news item about a co ...
A Guide to Income Tax: Overlooked Credits and Cuts
The US tax code changes from time to time, and majority of taxpayers cannot name at least three of the most common deductible expenditures. On that ...
Digesting Financial Statements: Earnings
For assessing how a company performed in a given period, the relation between income and cash flow statements should be taken into account. Several ...
A Guide to Your Personal Income Tax: Basics
For many filing your personal income tax is one of the most frustrating things to do. However, by planning ahead and pacing yourself, doing your ta ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 09:00 | GDP | 3 quarter | |
| 09:00 | Current Account | 3 quarter | |
| 09:00 | Business Investment | 3 quarter | |
| 09:00 | Import Price Index | Nov | |
| 10:00 | GDP | 3 quarter | |
| 15:30 | Gross Domestic Product | Oct | |
| 15:30 | Industrial Product Price Index | Nov | |
| 15:30 | Raw Materials Price Index | Nov | |
| 15:30 | Durable Goods Orders | Nov |
