One difficulty that many students encounter when studying finance (and also some areas of management accounting) is the various formulae that are required. From WACC, IRR, NPV, time value of money, bond valuation, there is a vast collection of formulae to understand and remember. (Some exams do provide a formula sheet but reliance on this […]
I’m always interested in the application of accounting principles to areas that people would not necessarily associate with accounting (anything that keeps students’ interest in the subject!). One such area that I have been reading about recently is that of football clubs. The introduction of Financial Fair Play (“FFP”) in recent years has put a […]
Raising finance at the start up stage can be one of the most difficult issues for a business. One important source of funding for young businesses can be business angels. These are wealthy private individuals who typically have had prior success with their own businesses and wish to invest capital in young growing businesses. This […]
For most accounting and finance students the principle that interest on debt is tax deductible and the requirement to incorporate this into a cost of capital calculation is something that is learned off and rarely questioned. It is unlikely that many students (or lecturers) stop and ask the question of why? And what impact does […]
Here is a great podcast (also available as an article) fom McKinsey for anybody studying dividend policy. It details why the dividend decision is an inevitable one for profitable companies and also discusses the different ways of paying back surplus profits to shareholders.
I am currently reading Innumeracy by John Allen Paulos – a book about the everyday impact of mathematical illiteracy. By all accounts it’s a great read so far with some very good explanations and illustrations of mathematical concepts relating to everyday life. However it wasn’t until I heard a recent podcast from Richard Curran’s The […]