As businesses grow, so do their needs for equipment and other assets to keep operations running smoothly. However, not all businesses have the capital to buy these assets outright, which is where operating leases come in. An operating lease is a type of lease agreement that allows businesses to rent equipment or other assets for…
When it comes to commercial real estate, property owners often consider leasing land to a tenant through a ground lease agreement. In this type of lease, the tenant or lessee is granted exclusive rights to use the land for a certain period. While the landlord or lessor retains ownership of the land. Ground leases have…
Unlevered beta is a way to measure how risky a company is. It does not include the effect of debt. It shows how much the company’s stock owners add to its risk. This demonstrates how the products of the firm respond to the market. Why Unlevered Beta Is Important Beta is a common way to…
Retained earnings are the money that a company keeps from its profits. The company does not give this money to its shareholders as dividends. Instead, the company uses this money to grow its business or pay its debts. Therefore, retained earnings show how much money a company has made over time and how well it…
A parsonage allowance is money that a church pays to its minister for housing. It is also called a housing allowance or a rental allowance. The parsonage allowance is not taxed as income, but it is taxed as self-employment. How Does It Work? To get the parsonage allowance, a minister must do three things: A…
Twitch is a platform where users can stream various types of content live. Gaming sessions, music performances, creative projects, and other activities are some examples of what users can broadcast to millions of viewers. Justin Kan and Emmett Shear founded a general content streaming service called Justin. tv in 2007. In 2011, they spun off…
The term means choosing defense or social spending in a budget. The term means a nation must pick guns (military) or butter (civilian) or both to spend its limited resources. The Production Possibility Frontier A production possibility frontier (PPF) shows the most output of two goods a fixed amount of resources can make. We can…
Interest rate parity (IRP) is a theory. It tells us how interest rates and currency rates are related. IRP says that the difference between the interest rates of the two countries is the same as the difference between the future currency rate and the current currency rate. The future currency rate is the rate that…
If you own a credit card, you know that you receive monthly statements detailing your transactions, payments, and other important information. But how long should you keep those statements? Should you keep them indefinitely or is there a specific timeframe you should follow? In this article, we will discuss the recommended duration for keeping credit…
The debt-to-EBITDA ratio is a widely used financial metric for assessing a company’s ability to service its debts. To compute the debt-to-EBITDA ratio, you need to divide a company’s total debt by its earnings before interest, taxes, depreciation, and amortization (EBITDA). This article will cover the definition of debt-to-EBITDA, the method of its calculation, and…
