shareholders

What Is Debt Ratio?

Debt Ratio is a financial ratio that indicates the percentage of a company’s assets that are provided via debt. It measures the extent of a company’s leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed as a decimal or percentage. A ratio greater than 1 shows that a …

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What Are Debentures?

A debenture is a medium or long term debt format that large companies use to borrow money at a fixed rate of interest. It is unsecured by collateral and thus it relies on the credit worthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds. …

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Gordon Growth Model Explained

Gordon Growth Model is a model to determine the fundamental value of stock based on a future series of dividends that grow at a constant rate. It is based on the future sequence of dividends that mature at a constant rate, provided that the dividend per share is payable in a year, the assumption of …

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Enron Scandal Explained

Enron was formed in 1985 by merging Houston Natural Gas Company and InterNorth Incorporated. Kenneth Lay became Enron’s CEO and chairman. Following the merger, Enron was branded as an energy trader and supplier. In 1990, Lay appointed Jeffrey Skilling to head the company. Enron, at one point valued 70 billion dollars, used to be the …

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