What is Commercial Property? Commercial property is real estate that is used for business activities. The designation usually refers to buildings that house businesses. But, it can also refer to land used to generate a profit. Also, it includes large residential rental properties. The designation of a property as a […]
What Is a Forward Contract? Forward contracts are private agreements between two parties to buy or sell an asset at a specified price on a future date. A forward contract can be used for hedging or speculation. However, its specific nature makes it particularly suitable for hedging. The forward contract […]
What Is the Average Collection Period? The average collection period (ACP) is the amount of time it takes for a business to receive outstanding payments. These are payments owed by its clients for goods or services in terms of accounts receivable (AR). Companies calculate the average collection period to make […]
What Is the Sustainable Growth Rate (SGR)? The sustainable growth rate (SGR) is the maximum rate of growth that a company can sustain without having to issue additional equity or take on new debt. The SGR involves maximizing sales and revenue growth without increasing financial leverage. Achieving the SGR can help […]
What is Corporate Development? Corporate Development is the internal focus of a corporation to generate and weigh strategic decisions to grow and restructure the business. Often this development is through establishing strategic partnerships, mergers, acquisitions, and joint ventures. The purpose is to create opportunities for the company through actions and […]
What is the Equity Multiplier The equity multiplier is a financial leverage ratio. It measures a firm’s assets that are financed by its shareholders. It does this by comparing total assets with total shareholder’s equity. In other words, the equity multiplier shows the percentage of assets that are financed or owed […]