The document discusses cost of capital and sources of finance for businesses. It defines cost of capital as the opportunity cost or expected rate of return of making an investment of equal risk. It then discusses various sources of finance available to entrepreneurs, including personal investment, venture capital, business angels, government assistance, bank loans, financial bootstrapping, and buyouts. Each source is briefly described.
Following this presentation you will:
- Understand the differences between Internal and External sources of finance.
- Distinguish between long, medium and short term sources of finance.
- Understand the advantages and disadvantages of each form.
Role of Financial Statements
Auditors Report
Management Discussion and Analysis
Balance Sheet
Statement of Profit and Loss
Cash Flow statement
Accounting Polices
How to define Assets , Liabilities , Investments , Revenues , Expenses , Taxes, Cash Flow statements
Following this presentation you will:
- Understand the differences between Internal and External sources of finance.
- Distinguish between long, medium and short term sources of finance.
- Understand the advantages and disadvantages of each form.
Role of Financial Statements
Auditors Report
Management Discussion and Analysis
Balance Sheet
Statement of Profit and Loss
Cash Flow statement
Accounting Polices
How to define Assets , Liabilities , Investments , Revenues , Expenses , Taxes, Cash Flow statements
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You can view this webinar at http://resources.peerrealty.com/real-estate-investing-101-private-equity
This is the presentation deck from Real Estate Investing 101: Financing, PeerRealty's fourth in a series of on-demand educational videos. In this series, PeerRealty Head of Investments Jeff Rothbart takes viewers through the fundamentals of real estate investing, and discusses some of the key metrics that real estate investors should consider. This Financing course analyzes the different types of debt instruments that investors can expect to find in real estate deals. It also discusses common loan agreement provisions, and explains how they can affect your real estate investment.
You can view this webinar at http://resources.peerrealty.com/real-estate-investing-101-financing
Types of investments from CPA wayne lippmanWayne Lippman
Overview of the general types of different investments people can make in today's society, presented by Wayne Lippman CPA http://www.yelp.com/biz/wayne-lippman-lippman-and-associates-cpas-walnut-creek-2
Real Estate Investing 101: Private EquityPeerRealty
This is the presentation deck from Real Estate Investing 101: Private Equity, PeerRealty's second in a series of on-demand educational videos. In this series, PeerRealty Head of Investments Jeff Rothbart takes viewers through the fundamentals of real estate investing, and discusses some of the key metrics that real estate investors should consider. This first course, Private Equity, discusses the fundamentals of real estate private equity transactions, and covers concepts like private placement memorandums, the "promote," and preferred returns.
You can view this webinar at http://resources.peerrealty.com/real-estate-investing-101-private-equity
This is the presentation deck from Real Estate Investing 101: Financing, PeerRealty's fourth in a series of on-demand educational videos. In this series, PeerRealty Head of Investments Jeff Rothbart takes viewers through the fundamentals of real estate investing, and discusses some of the key metrics that real estate investors should consider. This Financing course analyzes the different types of debt instruments that investors can expect to find in real estate deals. It also discusses common loan agreement provisions, and explains how they can affect your real estate investment.
You can view this webinar at http://resources.peerrealty.com/real-estate-investing-101-financing
Types of investments from CPA wayne lippmanWayne Lippman
Overview of the general types of different investments people can make in today's society, presented by Wayne Lippman CPA http://www.yelp.com/biz/wayne-lippman-lippman-and-associates-cpas-walnut-creek-2
The term stock market refers to several exchanges in which shares of publicly held companies are bought and sold. Such financial activities are conducted through formal exchanges and via over-the-counter (OTC) marketplaces that operate under a defined set of regulations. It is a place where shares of pubic listed companies are traded. thanks for taking our help.
The second presentation from Vienna Value Investing meetup, wee discussed value decomposition, how to estimate asset value and how to predict future earnings of a stock.
The valuation is an essential part of any investment, we provided basics of thinking and calculations. It was presented in our meetup group, it can be used as referenced for future study.
Keith quicksilver funding puts customers at the center of everything we do, empowering millions of people to meet their financial goals. Working in highly collaborative, agile teams, we’re defining a new industry.
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http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
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It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
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Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
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Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
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An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Digital Tools and AI for Teaching Learning and Research
Define cost of capital
1. DEFINE COST OF CAPITAL. WHAT ARE
THE VARIOUS SOURCES OF FINANCE
AVAILABLE TO A BUSINESS
ENTREPRENEUR? HOW THEY CAN BE
ESTIMATED?
MOHIT VERMA
BBA 4TH
SEMESTER
01915101718
2. WHAT IS COST OF CAPITAL?
• COST OF CAPITAL REFERS TO THE OPPORTUNITY COST OF MAKING A
SPECIFIC INVESTMENT. IT IS THE RATE OF RETURN THAT COULD HAVE BEEN
EARNED BY PUTTING THE SAME MONEY INTO A DIFFERENT INVESTMENT WITH
EQUAL RISK. THUS, THE COST OF CAPITAL IS THE RATE OF RETURN REQUIRED
TO PERSUADE THE INVESTOR TO MAKE A GIVEN INVESTMENT.
3. HOW COST OF CAPITAL WORKS (WITH
EXAMPLE)
• COST OF CAPITAL IS DETERMINED BY THE MARKET AND REPRESENTS THE DEGREE
OF PERCEIVED RISK BY INVESTORS. WHEN GIVEN THE CHOICE BETWEEN
TWO INVESTMENTS OF EQUAL RISK, INVESTORS WILL DETERMINE THE COST OF
CAPITAL AND GENERALLY CHOOSE THE ONE PROVIDING THE HIGHER RETURN.
• LET'S ASSUME COMPANY XYZ IS CONSIDERING WHETHER TO RENOVATE ITS
WAREHOUSE SYSTEMS. THE RENOVATION WILL COST $50 MILLION AND IS EXPECTED
TO SAVE $10 MILLION PER YEAR OVER THE NEXT 5 YEARS. THERE IS SOME RISK
THAT THE RENOVATION WILL NOT SAVE COMPANY XYZ A FULL $10 MILLION PER
YEAR. ALTERNATIVELY, COMPANY XYZ COULD USE THE $50 MILLION TO BUY
EQUALLY RISKY 5-YEAR BONDS IN ABC CO., WHICH RETURN 12% PER YEAR.
4. HOW COST OF CAPITAL WORKS (WITH
EXAMPLE)…….
• BECAUSE THE RENOVATION IS EXPECTED TO RETURN 20% PER YEAR
($10,000,000 / $50,000,000), THE RENOVATION IS A GOOD USE OF CAPITAL,
BECAUSE THE 20% RETURN EXCEEDS THE 12% REQUIRED RETURN XYZ COULD
HAVE GOTTEN BY TAKING THE SAME RISK ELSEWHERE.
• THE RETURN AN INVESTOR RECEIVES ON A COMPANY SECURITY IS THE COST OF
THAT SECURITY TO THE COMPANY THAT ISSUED IT. A COMPANY'S OVERALL
COST OF CAPITAL IS A MIXTURE OF RETURNS NEEDED TO COMPENSATE ALL
CREDITORS AND STOCKHOLDERS. THIS IS OFTEN CALLED THE WEIGHTED
AVERAGE COST OF CAPITAL AND REFERS TO THE WEIGHTED AVERAGE COSTS OF
THE COMPANY'S DEBT AND EQUITY.
5. WHY COST OF CAPITAL MATTERS
• COST OF CAPITAL IS AN IMPORTANT COMPONENT OF BUSINESS VALUATION
WORK. BECAUSE AN INVESTOR EXPECTS HIS OR HER INVESTMENT TO GROW
BY AT LEAST THE COST OF CAPITAL, COST OF CAPITAL CAN BE USED AS A
DISCOUNT RATE TO CALCULATE THE FAIR VALUE OF
AN INVESTMENT'S CASH FLOWS.
• INVESTORS FREQUENTLY BORROW MONEY TO MAKE INVESTMENTS,
AND ANALYSTS COMMONLY MAKE THE MISTAKE OF EQUATING COST OF
CAPITAL WITH THE INTEREST RATE ON THAT MONEY. IT IS IMPORTANT TO
REMEMBER THAT COST OF CAPITAL IS NOT DEPENDENT UPON HOW AND
WHERE THE CAPITAL WAS RAISED. PUT ANOTHER WAY, COST OF CAPITAL IS
DEPENDENT ON THE USE OF FUNDS, NOT THE SOURCE OF FUNDS.
6. WHAT ARE THE VARIOUS SOURCES OF
FINANCE AVAILABLE TO A BUSINESS
ENTREPRENEUR?
• SOURCES OF FINANCING FOR SMALL BUSINESS OR STARTUP
CAN BE DIVIDED INTO TWO PARTS: EQUITY FINANCING
AND DEBT FINANCING. SOME COMMON SOURCE OF
FINANCING BUSINESS IS PERSONAL INVESTMENT, BUSINESS
ANGELS, ASSISTANT OF GOVERNMENT, COMMERCIAL
BANK LOANS, FINANCIAL BOOTSTRAPPING, BUYOUTS.
7. SOURCES OF FINANCING BUSINESS
BEST COMMON SOURCES OF FINANCING YOUR BUSINESS ARE:
• PERSONAL INVESTMENT OR PERSONAL SAVINGS
• VENTURE CAPITAL
• BUSINESS ANGELS
• ASSISTANT OF GOVERNMENT
• COMMERCIAL BANK LOANS AND OVERDRAFT
• FINANCIAL BOOTSTRAPPING
• BUYOUTS
8. FINANCIAL BOOTSTRAPPING
• HERE THE GOAL REMAINS TO BUILD A SUSTAINABLE BUSINESS COMPRISING OF
COMMITTED EMPLOYEES AS WELL AS A GROWING CUSTOMER COMMUNITY
WITHOUT HAVING TO SEEK OUT THE ASSISTANCE OF A BANK LOAN.
• VARIOUS EXAMPLES OF FINANCIAL BOOTSTRAPPING ARE SWEAT EQUITY, OWNER
FINANCING, JOINT UTILIZATION, MINIMIZATION OF ACCOUNTS PAYABLE,
DELAYING PAYMENT, MINIMIZATION OF INVENTORY, SUBSIDY FINANCE ETC.
9. BUYOUTS
• THIS FORM OF CORPORATE FINANCE CAN ALTER THE FORM OF A
COMPANY’S OWNERSHIP. AFTER THE COMPANY ATTAINS A PRIVATE STATUS BY
BEING FREED FROM THE REGULATORY BURDENS OF OPERATING AS A PUBLIC
FIRM, THE ULTIMATE GOAL OF BUYOUT REMAINS TO BUILD ITS VALUE.
• SELLING OFF NON-CORE ASSETS, REFOCUSING ON THE MISSION OF THE
COMPANY, STREAMLINING PROCESSES, FRESHENING PRODUCT LINES AND
REPLACING EXISTING MANAGEMENT MIGHT THUS SERVE AS ESSENTIAL PARTS OF
THE BUYOUT DRIVE.
10. BUSINESS ANGELS
• THESE ARE THE PROFESSIONAL INVESTORS WHO INVEST EITHER JUST A PART OR
THEIR ENTIRE WEALTH AS WELL AS TIME IN THE GROWTH OF INNOVATIVE
COMPANIES.
11. VENTURE CAPITAL
• UNDER THIS FORM OF CORPORATE FINANCING, THE FINANCIAL INVESTOR
PARTICIPATES IN THE FRESH BUSINESS IN EXCHANGE FOR STRATEGIC ADVICE
AND CASH.
• VENTURE CAPITALISTS ARE THUS ON THE LOOKOUT FOR COMPANIES HAVING
HIGH GROWTH POTENTIAL, TOP-PERFORMING MANAGEMENT TEAMS AND LOW
LEVERAGE CAPACITY.
12. LOANS & OVERDRAFT
• BANK LOANS SERVE AS A LONG-TERM MODE OF FINANCING ENTREPRENEURIAL
BUSINESS. OVERDRAFT FACILITY IS FOR A SHORT-TERM SPAN. UNDER A BANK LOAN,
THE FINANCIAL INSTITUTION SHALL SPECIFY THE LOAN TENURE.
• AS WELL AS THE TIMING, AMOUNT OF REPAYMENTS AND INTEREST RATE. THE
ENTREPRENEUR GIVES SOME COLLATERAL IN EXCHANGE FOR THE BANK LOAN. IT
SERVES AS THE IDEAL CHOICE FOR FINANCING FIXED ASSET INVESTMENTS.
• THEY OFFER A LOWER INTEREST RATE COMPARED TO A BANK OVERDRAFT.
HOWEVER, THEY DO NOT RANK HIGH IN THE DEPARTMENT OF FLEXIBILITY.
• A BANK OVERDRAFT CAN BE OF ASSISTANCE WHEN THE BANK BALANCE OF
ENTREPRENEURS FALL BELOW THE MINIMUM LEVEL. AND THEY CAN BORROW SOME
MONEY FROM THE BANK ITSELF IN EXCHANGE OF A HIGH-INTEREST RATE. THEY ARE
THUS IDEAL FOR DEALING WITH SEASONAL CASH FLOW FLUCTUATIONS OR WHEN
THE BUSINESS FACES A SHORT-TERM LIQUIDITY CRISIS.