Finance: ROIC for the Uninitiated

ROIC is the Return On Invested Capital and, simply put, indicates how well a company is using it’s capital. As such, this is a very powerful indicator and forecasting tool for the current and future profitability of a company. However, because of it’s relative complexity, it is often overlooked in favor of simpler metrics. If …

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Finance: WACC for the Uninitiated

WACC stands for “Weighted Average Cost of Capital”. WACC is used by investors and analysts,¬†for a variety of purposes including as a way to assess perspective investments. This post is meant to give a very basic overview of what this concept is, and why it is important. The Cost of Capital A company’s capital is …

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Principles of Finance (22 Days)

This blog post is part of a series where I chronicle my advancement through WGU’s Bachelor of Science, Business – Information Technology Management degree. It includes detailed reports on my study methods and strategies as well as occasional tips and tricks. To see all entries in this series, click the “WGU” link under “Categories” on …

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