Vijay Shankar Sharma
Textbook finance, M&A, governance, strategy, and organisation terms. Not UNITE and not Layer 4. 147 terms. Textbook meanings only.
4 terms. Page 1 of 1.
finance · intro
Also called: WACC
The average rate a company is expected to pay to finance its assets, weighted by the relative proportions of debt and equity in its capital structure, and commonly used as the discount rate in valuation models. It reflects the blended return required by both lenders and shareholders to compensate them for the risk of financing the business.
governance · intermediate
A formal organisational policy establishing channels through which employees can confidentially report suspected misconduct, fraud, or legal violations, along with protections against retaliation for those who report in good faith.
finance · intro
The difference between a company's current assets, such as cash, inventory, and receivables, and its current liabilities, such as accounts payable and short-term debt, representing the funds available for day-to-day operations. Insufficient working capital can cause a business to struggle to meet short-term obligations even when it is fundamentally profitable.
accounting · intermediate
A mechanism in an acquisition agreement that adjusts the final purchase price based on the actual level of a target company's working capital at closing, compared to an agreed target level, protecting the buyer from acquiring a business that has been stripped of normal operating cash or inventory before the deal closes.