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Articles on Trending Technologies
Technical articles with clear explanations and examples
What are the elements of a sustainable growth model?
The financing policies of a company usually need to be sustainable and feasible in the long term. Companies want to make decisions that may make financial policies more feasible and sustainable. The measures opted for this must ensure that the growth of the company is in sync with the policies set by the company. The policies that need to be followed for sustainable growth are included in the sustainable growth model of a company.Assumptions of Sustainable Growth ModelThe sustainable growth model aims to achieve long-term financial goals by managing the different elements of the model. The sustainable growth model is ...
Read MoreCritical factors in determining the Capital Structure
Apart from Earning Per Share (EPS), value, and cash flow, there are additional factors that need to be considered while determining the capital structure of a company. Some of the most common factors are as follows −AssetsIf a company has more tangible assets, its chances of financial distress automatically goes down. Lenders can use the tangible assets to realize their funds by liquidating the assets in the case the company goes bankrupt. Hence, companies that do not have many tangible assets have debt at a costlier rate.Growth OpportunitiesThe companies with higher market-to-book value have a larger share of intangible assets ...
Read MoreWhat is meant by Financial Slack?
Financial Slack is the Unused Debt CapacityBusinesses go through various conditions in their lifetime. There are times when companies earn high income which can be termed as profits or growth of revenues. On the other hand, some companies may go through a downturn in sales, profits, or revenues. In order to sail through such conditions, a company must have extra money. This extra money that can be used when the company is in trouble is known as the financial slack of the company.Financial slack is the untapped debt potential of a company. It may be availed from unused debt capacity, ...
Read MoreWhat are some forms of Financing Effects?
Financing effects are special kinds of considerations made for the companies or individuals who are weaker in terms of finances and may find it hard to obtain debt from the markets. The intention of financial effects is to help companies and individuals mitigate the financial burdens that may arise from time to time.Here are some prominent forms of financing effects.Subsidized LoansIn case of a subsidized loan, the lender pays the interest portion of the loan, reducing the burden of the borrower who may find it hard to pay back the interests on a loan taken for a certain reason, such ...
Read MoreWhat is risk-free debt and what is its beta?
Risk-free Debt is HypotheticalRisk-free debt is a hypothetical condition where the risk associated with the debt is zero. In general, there is no such thing as risk-free debt. While the risk of debt may go up and down in comparison, it can never be zero in any condition. This is apparent from the government bonds which carry minimum risk but not risk-free.Even when a collateral is issued against the debt resourced, the debt does not become risk-free. Investors should be aware that the company may be unable to provide the debt back in case of bankruptcy.It is notable that the ...
Read MoreFactors that affect the Free Cash Flows of a company
The Free Cash Flow of a company depends on the following factors −Sales ProjectionExpense EstimationDepreciationCapital ExpenditureChanges in Net Working CapitalInterest ExpensesTax RatesInflationLet us discuss each of these factors in detail and see how they affect the Free Cash Flows of a company.Sales ProjectionTo determine the Free Cash Flow of a company, the first step is to determine its projected sales.Sales depend upon many factors, such as market share, growth, and demand of products in the market.A company cannot remain at one stage in terms of sales. There are normal, super-normal, and declining growth phases of a company.An analyst dealing with ...
Read MoreWhat is meant by Debt Rebalancing?
Debt rebalancing is a process of rebalancing the debt while calculating the Weighted Average Cost of Capital (WACC). The concept of WACC is based on the assumption that WACC remains constant throughout the lifetime of a project. It also depends on the fact that debt proportionality remains the same over the course of years of a project.As WACC remains constant throughout the lifetime of a project, the debt will go down each year according to WACC.As WACC remains constant over the years, to keep the debt proportionality constant, debt has to be rebalanced to keep the WACC constant.This change in ...
Read MorePyTorch – torch.linalg.cond()
To compute the condition number of a matrix with respect to a matrix norm, we could apply torch.linalg.cond() method. It returns a new tensor with computed condition number. It accepts a matrix, a batch of matrices and also batches of matrices. A matrix is a 2D torch Tensor. It supports input of float, double, cfloat, and cdouble data typesSyntaxtorch.linalg.cond(M, p=None)ParametersM – A matrix or batch of matrices.p – A type of matrix norm to be used in computation of condition number. Default matrix norm is 2-norm.It returns a real-valued tensor of condition number.StepsWe could use the following steps to compute the ...
Read MorePyTorch – How to compute the pseudoinverse of a matrix?
To compute the pseudoinverse of a square matrix, we could apply torch.linalg.pinv() method. It returns a new tensor with pseudoinverse of the given matrix. It accepts a matrix, a batch of matrices and also batches of matrices. A matrix is a 2D torch Tensor. It supports input of float, double, cfloat, and cdouble data types.Syntaxtorch.linalg.pinv(M)Where M is a matrix or batches of matrices.StepsWe could use the following steps to compute the pseudoinverse of a matrix −Import the required library. In all the following examples, the required Python library is torch. Make sure you have already installed it.import torchDefine a matrix. ...
Read MorePyTorch – How to compute the inverse of a square matrix?
To compute the inverse of a square matrix, we could apply torch.linalg.inv() method. It returns a new tensor with inverse of the given matrix. It accepts a square matrix, a batch of square matrices, and also batches of square matrices.A matrix is a 2D torch Tensor. It supports input of float, double, cfloat, and cdouble data types. The inverse matrix exists if and only if the square matrix is invertible.Syntaxtorch.linalg.inv(M)Where M is a square matrix or a batch of square matrices. It returns the inverse matrix.StepsWe could use the following steps to compute the inverse of a square matrix −Import ...
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