
Agency Cost | Examples & Meaning - InvestingAnswers
Sep 29, 2020 · Agency Cost Examples For example, when traveling for a conference, senior partners incur agency costs by dining at gourmet restaurants and upgrading to first-class flights. These expenses not only increase a company’s operating cost, but they also don’t provide any value to shareholders.
Government Sponsored Enterprise (GSE) - InvestingAnswers
Oct 1, 2019 · What is a Government Sponsored Enterprise (GSE)? In the US, government sponsored enterprises, or GSEs, are quasi-governmental, privately-held entities established to improve, and at times make possible, the flow of credit to specific sectors of the economy or to otherwise provide essential services to the public.
QAE -- Qualified Adoption Expenses -- Definition & Example
Oct 1, 2019 · For example, let's assume that Jane would like to adopt a child. The adoption agency has indicated that the adoption will cost $30,000. The IRS allows Jane to take a $13,170 tax credit to help offset qualified adoption expenses. The costs can include attorney fees, court costs, and travel expenses. Why Do Qualified Adoption Expenses (QAE) Matter?
This Home Insurance Mistake Can Cost You More Than $100,000
Jan 22, 2021 · 'Replacement cost is the cost of totally rebuilding your home from the ground up in the event it is a total loss, whether by fire, flood, storm, hail, etc. It is what it will cost to completely rebuild your home and replace the contents at today's materials and labor costs, items prices, etc.,' says Lynch.
Step-Up Bonds Definition & Example - InvestingAnswers
Oct 5, 2020 · Conversely, if market rates rise to 10% (Scenario C) and Company XYZ pays only 8% for its debt, then the firm will have a favorable cost of debt. There are several advantages to step-up bonds: They offer coupon payments that somewhat offset inflation , they usually come from high-quality issuers, and they are fairly liquid .
Ballpark Figure Definition & Example - InvestingAnswers
Sep 29, 2020 · She tells John that driveways generally cost $5,000 or $6,000. A ballpark figure is not the same as a written estimate or a good faith estimate, which provides detailed costs and is meant to provide reliable disclosure to a customer. Why Does a Ballpark Figure Matter? Ballpark figures help people get a sense of what things cost.
Mad Men Stocks for the 21st Century | InvestingAnswers
Jun 1, 2021 · So to help promote its new Miller-Lite brand, Miller Brewing turned to ad agency McCann-Erickson -- which came up with an ingenious idea. The company began running a series of commercials featuring Bubba Smith, Mickey Mantle and other legends from the sporting world arguing over Miller-Lite in the now famous 'tastes great/less filling' debates.
Collateralized Mortgage Obligation (CMO) - InvestingAnswers
Oct 1, 2019 · How Does a Collateralized Mortgage Obligation (CMO) Work? When an investor purchases a CMO, he or she purchases some class or tranche of the security whose risk depends on the maturity structure of the mortgages backing it.
Tax Service Fee Definition & Example - InvestingAnswers
Aug 12, 2020 · If John misses a payment or makes a late payment, the tax service agency alerts Bank XYZ. The bank passes along this monitoring expense to John via a tax service fee at closing (or, sometimes, as a fee included as part of his monthly escrow payment).
Tobin's Q Ratio Definition & Example - InvestingAnswers
Oct 1, 2019 · James Tobin, a Nobel Prize winner in economics and a professor at Yale University, developed the ratio after hypothesizing that companies should be 'worth' what they cost to replace. Why Does Tobin's Q Ratio Matter? When the Tobin's Q ratio is between 0 and 1, it costs more to replace a firm's assets than the firm is worth. A Tobin's Q above 1 ...