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Convertible Securities

Wall Street Mojo

Investors aiming to have a diversified portfolio are recommended to convert their security forms as and when they get an opportunity. Convertible securities provide advantages to both issuers and investors. However, the investors here are not obligated to convert securities. Table of contents What Are Convertible Securities?

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Accrued Interest Formula

Wall Street Mojo

Interest is accrued in the case of a bond because interest starts accumulating from the time the bond is issued Bond Is Issued Bonds refer to the debt instruments issued by governments or corporations to acquire investors’ funds for a certain period.

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The Collapse of Silicon Valley Bank: The Start of Great Financial Crisis 2.0?

Mergers and Inquisitions

In 24 hours, it went from “We’re fine, but we took some losses and need additional capital” to “The FDIC is taking over, the government has guaranteed uninsured deposits, and there might be additional bank runs and a financial crisis or three.” Set Up a “Bond Ladder” – You know, just like every retail investor does.

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Revenue Sharing

Wall Street Mojo

Governments also distribute revenue; it goes hand in hand with the decentralization of power. It can even attract future investors. Every firm follows a different revenue distribution model—they keep a portion of revenue and distribute the remainder between shareholders, investors, employees, and even third-party distributors.

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Pass Through Entity

Wall Street Mojo

A pass-through entity, also commonly known as a flow-through entity is a type of legal business organization that transfers all its income in the name of the investors or owners, in order to avoid double taxation. The government approves these mechanisms, so there are no chances of future obligations regarding the taxes on the same.

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Determining Discount Rate for Companies with Negative Initial Cash Flows and Future Growth

Wizenius

Weighted Average Cost of Capital (WACC): Calculate the Weighted Average Cost of Capital (WACC), which represents the average rate of return required by the company's investors. Market Risk Premium and Risk-Free Rate: Consider the market risk premium, which represents the additional return investors expect for bearing the overall market risk.

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Event-Driven Hedge Funds: The Best Home for Bankers Turned Investors?

Mergers and Inquisitions

Here it is in the investor presentation: We don’t know the planned valuation for CMS in this spin-off, but let’s assume that Jacobs plans to spin it off at an IPO offering price that implies an 11.5x If you want more, there are several Sum of the Parts lessons in the valuation sections of our Financial Modeling Mastery course.

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