Once the pattern has been completed, it breaks out of the wedge, usually in the opposite direction. The bullish bias of a falling wedge cannot be confirmed until a breakout. These are bullish reversal patterns found on daily…
The cost of the capital framework can be used to evaluate the financial performance of top management. If the actual profitability of the project is more than the projected and the actual cost of capital, the performance may…
The cost of capital is often calculated by a company’s finance department and used by management to set a discount rate (or hurdle rate) that must be beaten to justify an investment. Historical costs are those which are…
In the field of finance, one of the most important concepts is that of weighted average cost of capital (WACC). Simply put, WACC is the average cost of all the capital that a company has raised from various…
Backup servers or generators are a common example of duplication, ensuring that if a power outage occurs no data or productivity is lost. No company can completely avoid risks, especially because many risk factors are external. These strategies…
If you want to enhance your job performance and identify and mitigate risk more effectively, here’s a breakdown of what risk management is and why it’s important. To identify these risks, McKinsey recommends using a two-by-two risk grid,…
This is usually calculated as the risk value, which is the probability of an event happening multiplied by the cost of the event. Fire insurance and product liability insurance are common company policies. The risk of fraud or…
Sources of risk can be external, such as changes in what consumers want, changes in competitor behavior, external economic factors, and government rules or regulations. They can also be internal, such as decisions made by management or the…
Expenses are deducted from a company’s revenue to arrive at its Profit or Net Income. Accrued revenue is the revenue earned by a company for the delivery of goods or services that have yet to be paid by…
This is specifically for the successful delivery of goods or services that haven’t yet been paid for by the customer. In accrual how to start investing in cryptocurrency: a guide for beginners accounting, when a sales transaction takes…
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