But let’s also consider that you incurred $50 in transaction fees from the broker ($25 when you bought the investment, and another $25 when you sold). Although stocks can be risky investments, there are steps to help you reduce your risk. For... Read more
Computes the future value of annuity by default, but other options are available. For example, if you decided to invest $100.00 at an interest rate of 10% – assuming a compounding frequency of 1 – the investment should be worth $110 by the end of on... Read more
Throughout the remainder of this book, we will focus on using the financial calculator to solve problems involving compound interest, instead of using the formulas as illustrated above. The more compounding periods there are, the greater the future... Read more
If you choose, you can use a separate Form W-2 for fringe benefits and any other benefit information. A health savings account (HSA) is an account owned by a qualified individual who is generally your employee or former employee. Any contributions... Read more
Even though they both have a stated interest rate of 10%, the effective annual interest rate of the loan that compounds twice per year will be higher. Effective annual rate (EAR) is an interest rate that reflects the true return on an investment or... Read more
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in eco... Read more
The debt to equity ratio can be misleading unless it is used along with industry average ratios and financial information to determine how the company is using debt and equity as compared to its industry. Companies that are heavily capital intensive... Read more
Advisory services provided by Carbon Collective Investment LLC (“Carbon Collective"), an SEC-registered investment adviser. There is no definitive answer to this question as the ideal debt to asset ratio varies depending on the industry a comp... Read more
A high ratio like this makes it harder for the company to find additional debt financing. You will after reading about debt ratio, an easy calculation used to illustrate financial viability. Debt can be scary when you’re paying off college loa... Read more
The IRS allows several different methods (FIFO or LIFO, for example), depending on the type of inventory. The IRS has detailed rules for which identification method you can use and when you can make changes to your inventory cost method. The Interna... Read more
