Finance Formulas / March 25, 2018 / Alia Marquez
Customer acquisition cost (CAC) is a metric that has been growing in use, along with the emergence of Internet companies and web-based advertising campaigns that can be tracked. Traditionally, a company had to engage in shotgun style advertising and find methods to track consumers through the decision-making process.
The debt ratio is a financial ratio that measures the extent of a company’s leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed as a decimal or percentage. It can be interpreted as the proportion of a company’s assets that are financed by debt.
Meanwhile, upset that he is only earning $40 per year, the original investor decides to sell, but to entice others to buy his bond instead of bonds directly from ABC Corporation, he lowers his price. For example, he lowers it to $650, making its effective annual yield $40$650 or 6.15%. If the bond issuer had not increased its rates, the investor might not have had to sell his bond for less than its face value.
Annual Percentage rate (APR) explains the cost of borrowing with a variety of loans, including credit cards and mortgage loans. Costs are quoted as a percentage. For example, if your loan has an APR of 10 percent, you would pay $10 per $100 that you borrow each year. All other things being equal, the loan with the lowest APR is typically least expensive—but it’s usually more complicated than that.
In Case You Missed It