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Flashcard 1428960972044

Tags
#blue-apron #citychef
Question
Blue Apron has just announced that it closed a [...] million round of funding led by Fidelity Management and Research Company, with participation from existing investors
Answer
$135


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Blue Apron has just announced that it closed a $135 million round of funding led by Fidelity Management and Research Company, with participation from existing investors

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Blue Apron Eats Up $135M At A $2B Valuation | TechCrunch
[emptylink] Next Story Inside GoPro’s Ambitious Plan To Connect Their Cameras To The Cloud <span>Blue Apron has just announced that it closed a $135 million round of funding led by Fidelity Management and Research Company, with participation from existing investors. The WSJ reported last month that this round was being sought at a $2 billion valuation. Update 10:30am ET: A Blue Apron spokesperson has just confirmed to TechCrunch that this rou







Flashcard 1433127226636

Tags
#italian #italian-grammar #the-noun-group
Question
Feminine nouns ending in -ca, -ga form their plural in [...]

Amica

Answer
-che, -ghe

amica amiche friend

lega leghe league


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Feminine nouns ending in -ca, -ga form their plural in -che, -ghe, with the hard c, g sound: amica amiche friend lega leghe league

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#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
When accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ).

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he common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit <span>When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; &

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su




Flashcard 1438426205452

Tags
#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
The purpose of the post-audit process is improving the accuracy of [...] by adopting improved forecasting methods.
Answer
capital budgeting forecasts


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Independent versus mutually exclusive projects. Mutually exclusive projects are investments that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long

Original toplevel document

Subject 2. Basic Principles of Capital Budgeting
In a non-conventional cash flow pattern, the initial outflow can be followed by inflows and/or outflows. <span>Some project interactions: Independent versus mutually exclusive projects. Mutually exclusive projects are investments that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met. Project sequencing. How does one sequence multiple projects over time, since investing in project B may depend on the result of investing in project A? Unlimited funds versus capital rationing. Capital rationing occurs when management places a constraint on the size of the firm's capital budget during a particular period. In such situations, capital is scarce and should be allocated to the projects most likely to maximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by paying the required rate of return. Learning Outcome Statements b. describe the basic principles of capital budgeting; c. explain how the evaluat







Article 1438579035404

Subject 3. Investment Decision Criteria
#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10

When a firm is embarking upon a project, it needs tools to assist in making the decision of whether to invest in the project or not. In order to demonstrate the use of these four methods, the cash flows presented below will be used. Net Present Value (NPV) This method discounts all cash flows (including both inflows and outflows) at the project's cost of capital and then sums those cash flows. The project is accepted if the NPV is positive. where CF t is the expected cash flow at period t, k is the project's cost of capital, and n is its life. Cash outflows are treated as negative cash flows since they represent expenditures of the company to fund the project. Cash inflows are treated as positive cash flows since they represent money being brought into the company. The NPV represents the amount of present-value cash flows that a project can generate after repaying the invested capital (project cost) and the required rate of return on that capital. An NPV of z



Flashcard 1438669212940

Tags
#cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
If you replace an old machine with a new one, what is the opportunity cost?
Answer
the cash flows the old machine would generate


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3. BASIC PRINCIPLES OF CAPITAL BUDGETING
opportunity cost is what a resource is worth in its next-best use. For example, if a company uses some idle property, what should it record as the investment outlay: the purchase price several years ago, the current market value, or nothing? <span>If you replace an old machine with a new one, what is the opportunity cost? If you invest $10 million, what is the opportunity cost? The answers to these three questions are, respectively: the current market value, the cash flows the old machine would generate, and $10 million (which you could invest elsewhere). &#13







Flashcard 1438869753100

Tags
#algebra-baldor
Question
Los signos empleados en Algebra son de tres clases: Signos de Operación, [...] y Signos de Agrupación.
Answer
Signos de Relación


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Los signos empleados en Algebra son de tres clases: Signos de Ope ración, Signos de Relación y Signos de Agrupación.

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Flashcard 1438898064652

Tags
#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Question
When accounting profit equals normal profit, economic profit is [...].
Answer
zero


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When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su







#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ).

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When accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ).

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su




Flashcard 1438902783244

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
Because of the [...]—that MRSBW must diminish as he moves toward more bread and less wine.
Answer
convexity assumption


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Because of the convexity assumption—that MRS BW must diminish as he moves toward more bread and less wine—the MRS BW is continuously changing as he moves along his indifference curve.

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3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
e. If, at some point, the slope of the indifference curve had value –2.5, it means that, starting at that particular bundle, our consumer would be willing to sacrifice wine to obtain bread at the rate of 2.5 ounces of wine per slice of bread. <span>Because of the convexity assumption—that MRS BW must diminish as he moves toward more bread and less wine—the MRS BW is continuously changing as he moves along his indifference curve. EXAMPLE 2 Understanding the Marginal Rate of Substitution Tom Warren currently has 50 blueberries and 20 peanuts. His marginal rate of substitution







Flashcard 1438907763980

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES


The section is divided in:

3.1. Axioms of the Theory of Consumer Choice

3.2. Representing [...]

3.3. Indifference Curves: The Graphical Portrayal of the Utility Function

3.4. Indifference Curve Maps

3.5. Gains from Voluntary Exchange: Creating Wealth through Trade

Answer
the Preference of a Consumer: The Utility Function


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Section 3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
3. UTILITY THEORY: MODELING PREFERENCES AND TASTES The section is divided in: 3.1. Axioms of the Theory of Consumer Choice 3.2. Representing the Preference of a Consumer: The Utility Function 3.3. Indifference Curves: The Graphical Portrayal of the Utility Function 3.4. Indifference Curve Maps 3.5. Gains from Voluntary Exchange: Creating We







Flashcard 1438913269004



Tags
#4-3-the-investment-opportunity-set #cfa #cfa-level-1 #economics #has-images #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-5-consumer-equilibrium #study-session-4
Question
The marginal rate of substitution is the rate at which the consumer is willing to sacrifice wine for bread. Additionally, the price ratio is the rate at which she must sacrifice wine for another slice of bread. So, at equilibrium, the consumer is just willing to pay [...] that she must pay.
Answer
the opportunity cost


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tion is the rate at which the consumer is just willing to sacrifice wine for bread. Additionally, the price ratio is the rate at which she must sacrifice wine for another slice of bread. So, at equilibrium, the consumer is just willing to pay <span>the opportunity cost that she must pay.<span><body><html>







Flashcard 1438915890444

Tags
#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Question

Economic profit for a firm can originate from sources such as:

  • competitive [...]

  • exceptional [...] or skill;

Answer
advantage;

managerial efficiency


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Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclu

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2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su







Flashcard 1438918249740

Tags
#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Question

Economic profit for a firm can originate from sources such as:

  • exclusive access to [...];

Answer
less-expensive inputs


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#13; competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to <span>less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where sup

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su







Flashcard 1438920084748

Tags
#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Question

Economic profit for a firm can originate from sources such as:

  • difficult to [...]

Answer
copy technology or innovation (e.g., patents, trademarks, and copyrights);


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Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental p

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su







Flashcard 1438922444044

Tags
#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Question

Economic profit for a firm can originate from sources such as:

  • preferential [...] policy;

Answer
treatment under governmental


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difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential <span>treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su







Flashcard 1438924803340

Tags
#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Question

Economic profit for a firm can originate from sources such as:

  • large increases in demand where [...]

Answer
supply is unable to respond fully over time;


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); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where <span>supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su







Flashcard 1438927162636

Tags
#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Question

Economic profit for a firm can originate from sources such as:

  • exertion of [...]

Answer
monopoly power (price control) in the market;


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Open it
3; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of <span>monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunitie

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su







#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Some factors (monopoly, market barriers, trademarks etc.) may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition.

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Open it
large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. <span>Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su




#cfa #cfa-level-1 #economic-and-normal-profit #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run.

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net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. <span>In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. <span><body><html>

Original toplevel document

2. OBJECTIVES OF THE FIRM
00 – $48,000,000 = $2,000,000. Note that total accounting costs in either case include interest expense—which represents the return required by suppliers of debt capital—because interest expense is an explicit cost. <span>2.1.2. Economic Profit and Normal Profit Economic profit (also known as abnormal profit or supernormal profit ) may be defined broadly as accounting profit less the implicit opportunity costs not included in total accounting costs. Equation (3a)  Economic profit = Accounting profit – Total implicit opportunity costs We can define a term, economic cost , equal to the sum of total accounting costs and implicit opportunity costs. Economic profit is therefore equivalently defined as: Equation (3b)  Economic profit = Total revenue – Total economic costs For publicly traded corporations, the focus of investment analysts’ work, the cost of equity capital is the largest and most readily identified implicit opportunity cost omitted in calculating total accounting cost. Consequently, economic profit can be defined for publicly traded corporations as accounting profit less the required return on equity capital. Examples will make these concepts clearer. Consider the start-up company for which we calculated an accounting profit of €300,000 and suppose that the entrepreneurial executive who launched the start-up took a salary reduction of €100,000 per year relative to the job he left. That €100,000 is an opportunity cost of involving him in running the start-up. Besides labor, financial capital is a resource. Suppose that the executive, as sole owner, makes an investment of €1,500,000 to launch the enterprise and that he might otherwise expect to earn €200,000 per year on that amount in a similar risk investment. Total implicit opportunity costs are €100,000 + €200,000 = €300,000 per year and economic profit is zero: €300,000 – €300,000 = €0. For the publicly traded corporation, we consider the cost of equity capital as the only implicit opportunity cost identifiable. Suppose that equity investment is $18,750,000 and shareholders’ required rate of return is 8 percent so that the dollar cost of equity capital is $1,500,000. Economic profit for the publicly traded corporation is therefore $2,000,000 (accounting profit) less $1,500,000 (cost of equity capital) or $500,000. For the start-up company, economic profit was zero. Total economic costs were just covered by revenues and the company was not earning a euro more nor less than the amount that meets the opportunity costs of the resources used in the business. Economists would say the company was earning a normal profit (economic profit of zero). In simple terms, normal profit is the level of accounting profit needed to just cover the implicit opportunity costs ignored in accounting costs. For the publicly traded corporation, normal profit was $1,500,000: normal profit can be taken to be the cost of equity capital (in money terms) for such a company or the dollar return required on an equal investment by equity holders in an equivalently risky alternative investment opportunity. The publicly traded corporation actually earned $500,000 in excess of normal profit, which should be reflected in the common shares’ market price. Thus, the following expression links accounting profit to economic profit and normal profit: Equation (4)  Accounting profit = Economic profit + Normal profit When accounting profit equals normal profit, economic profit is zero. Further, when accounting profit is greater than normal profit, economic profit is positive; and when accounting profit is less than normal profit, economic profit is negative (the firm has an economic loss ). Economic profit for a firm can originate from sources such as: competitive advantage; exceptional managerial efficiency or skill; difficult to copy technology or innovation (e.g., patents, trademarks, and copyrights); exclusive access to less-expensive inputs; fixed supply of an output, commodity, or resource; preferential treatment under governmental policy; large increases in demand where supply is unable to respond fully over time; exertion of monopoly power (price control) in the market; and market barriers to entry that limit competition. Any of the above factors may lead the firm to have positive net present value investment (NPV) opportunities. Access to positive NPV opportunities and therefore profit in excess of normal profits in the short run may or may not exist in the long run, depending on the potential strength of competition. In highly competitive market situations, firms tend to earn the normal profit level over time because ease of market entry allows for other competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. 2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical su





NPV formula explained
#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10

where CFt is the expected cash flow at period t, k is the project's cost of capital, and n is its life.

  • Cash outflows are treated as negative cash flows since they represent expenditures of the company to fund the project.
  • Cash inflows are treated as positive cash flows since they represent money being brought into the company.

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#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10
Question

where CFt is the [...], k is the [...] , and n is its life.

Answer
expected cash flow at period t

project's cost of capital


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NPV formula explained
where CF t is the expected cash flow at period t, k is the project's cost of capital, and n is its life. Cash outflows are treated as negative cash flows since they represent expenditures of the company to fund the projec







Flashcard 1438954949900



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#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10
Question

Cash outflows are treated as [...] since they represent expenditures of the company to fund the project.

Answer
negative cash flows


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NPV formula explained
where CF t is the expected cash flow at period t, k is the project's cost of capital, and n is its life. Cash outflows are treated as negative cash flows since they represent expenditures of the company to fund the project. Cash inflows are treated as positive cash flows since they represent money being brought into the company. </







Flashcard 1438957571340



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#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10
Question

Cash inflows are treated as [...] since they represent money being brought into the company.

Answer
positive cash flows


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NPV formula explained
cted cash flow at period t, k is the project's cost of capital, and n is its life. Cash outflows are treated as negative cash flows since they represent expenditures of the company to fund the project. Cash inflows are treated as <span>positive cash flows since they represent money being brought into the company. <span><body><html>







#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
The NPV represents the amount of present-value cash flows that a project can generate after repaying the invested capital (project cost) and the required rate of return on that capital. An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved.

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Subject 3. Investment Decision Criteria
3; Cash outflows are treated as negative cash flows since they represent expenditures of the company to fund the project. Cash inflows are treated as positive cash flows since they represent money being brought into the company. <span>The NPV represents the amount of present-value cash flows that a project can generate after repaying the invested capital (project cost) and the required rate of return on that capital. An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved. Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0. NPV measures the dollar benefit of the project to shareh




Flashcard 1438960979212

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#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
The NPV represents the amount of present-value cash flows that a project can generate after [...] and [...] .
Answer
repaying the invested capital (project cost)

the required rate of return on that capital


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The NPV represents the amount of present-value cash flows that a project can generate after repaying the invested capital (project cost) and the required rate of return on that capital. An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rat

Original toplevel document

Subject 3. Investment Decision Criteria
3; Cash outflows are treated as negative cash flows since they represent expenditures of the company to fund the project. Cash inflows are treated as positive cash flows since they represent money being brought into the company. <span>The NPV represents the amount of present-value cash flows that a project can generate after repaying the invested capital (project cost) and the required rate of return on that capital. An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved. Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0. NPV measures the dollar benefit of the project to shareh







Flashcard 1438963338508

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#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
[...] of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital.
Answer
An NPV


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The NPV represents the amount of present-value cash flows that a project can generate after repaying the invested capital (project cost) and the required rate of return on that capital. An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital. If a firm takes on a projec

Original toplevel document

Subject 3. Investment Decision Criteria
3; Cash outflows are treated as negative cash flows since they represent expenditures of the company to fund the project. Cash inflows are treated as positive cash flows since they represent money being brought into the company. <span>The NPV represents the amount of present-value cash flows that a project can generate after repaying the invested capital (project cost) and the required rate of return on that capital. An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved. Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0. NPV measures the dollar benefit of the project to shareh







#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Decision rules:

  • The higher the NPV, the better.
  • Reject if NPV is less than or equal to 0.

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Subject 3. Investment Decision Criteria
he project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved. <span>Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0. NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin&




Flashcard 1438969105676

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#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question

NPV Decision rules:

  • The [...] the better.
  • Reject if [...]
Answer
higher the NPV,

NPV is less than or equal to 0.


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Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0.

Original toplevel document

Subject 3. Investment Decision Criteria
he project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved. <span>Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0. NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin&







#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin" information. Safety margin refers to how much the project return could fall in percentage terms before the invested capital is at risk.

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Subject 3. Investment Decision Criteria
on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved. Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0. <span>NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin" information. Safety margin refers to how much the project return could fall in percentage terms before the invested capital is at risk. Assuming the cost of capital for the firm is 10%, calculate each cash flow by dividing the cash flow by (1 + k) t where k is the cost of capital and t is the year number.




Flashcard 1438972513548

Tags
#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
[...] measures the dollar benefit of the project to shareholders.
Answer
NPV


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NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin" information. Safety margin refers to ho

Original toplevel document

Subject 3. Investment Decision Criteria
on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved. Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0. <span>NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin" information. Safety margin refers to how much the project return could fall in percentage terms before the invested capital is at risk. Assuming the cost of capital for the firm is 10%, calculate each cash flow by dividing the cash flow by (1 + k) t where k is the cost of capital and t is the year number.







Flashcard 1438974872844

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#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
NPV does not measure [...], and thus cannot provide "safety margin" information.
Answer
the rate of return of the project


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NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin" information. Safety margin refers to how much the project return could fall in percentage terms before the invested capital is at risk

Original toplevel document

Subject 3. Investment Decision Criteria
on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved. Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0. <span>NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin" information. Safety margin refers to how much the project return could fall in percentage terms before the invested capital is at risk. Assuming the cost of capital for the firm is 10%, calculate each cash flow by dividing the cash flow by (1 + k) t where k is the cost of capital and t is the year number.







Flashcard 1438977232140

Tags
#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
[...] refers to how much the project return could fall in percentage terms before the invested capital is at risk.
Answer
Safety margin


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dy>NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin" information. Safety margin refers to how much the project return could fall in percentage terms before the invested capital is at risk.<body><html>

Original toplevel document

Subject 3. Investment Decision Criteria
on that capital. If a firm takes on a project with a positive NPV, the position of the stockholders is improved. Decision rules: The higher the NPV, the better. Reject if NPV is less than or equal to 0. <span>NPV measures the dollar benefit of the project to shareholders. However, it does not measure the rate of return of the project, and thus cannot provide "safety margin" information. Safety margin refers to how much the project return could fall in percentage terms before the invested capital is at risk. Assuming the cost of capital for the firm is 10%, calculate each cash flow by dividing the cash flow by (1 + k) t where k is the cost of capital and t is the year number.








NPV example excercise
#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10 #subject-2-investment-decision-criteria

Assuming the cost of capital for the firm is 10%, calculate each cash flow by dividing the cash flow by (1 + k)t where k is the cost of capital and t is the year number. Calculate the NPV for Project A and B above.

NPV = CF0 + CF1 + CF2 + CF3 + CF4

Project A's NPV = -1,000 + 750/1.101 + 350/1.102 + 150/1.103 + 50/1.104 = -1,000 + 682 + 289 + 113 + 34 = $118 (rounded)
Project B's NPV = -1,000 + 100/1.101 + 250/1.102 + 450/1.103 + 750/1.104 = -1,000 + 91 + 207 + 338 + 512 = $148 (rounded)

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Article 1438983523596

Series A, B, C Funding: What It All Means and How It Works
#investopedia #series-a-b-c

Series A, B, and C have nothing to do with the alphabet, rather with the development stage of the companies that are raising capital. Series A, B, and C are necessary ingredients for a business that decides “bootstrapping,” or merely surviving off of the generosity of friends, family and the depth of their own pockets, will not suffice. The main differences between rounds are the maturity levels of the businesses, the type of investors involved, the purpose of raising capital and how it is ultimately allocated. The funding rounds begin with a “seed capital” phase and follow with A, B and then C funding. Once you understand the distinction between these rounds, it will be easier to analyze headlines regarding the startup and investing world, by grasping the context of what exactly a round means for the prospects and direction of a company. Series A, B, and C funding rounds are merely stepping stones in the process of turning an ingenious idea into a revolutionary global company, ripe for an IPO. How Fu



#investopedia
Series A, B, and C have to do with the development stage of the companies that are raising capital.

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Series A, B, C Funding: What It All Means and How It Works
Series A, B, and C have nothing to do with the alphabet, rather with the development stage of the companies that are raising capital. Series A, B, and C are necessary ingredients for a business that decides “bootstrapping,” or merely surviving off of the generosity of friends, family and the depth of their own pockets




Flashcard 1438988504332

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#investopedia
Question
Series A, B, and C have to do with [...] of the companies that are raising capital.
Answer
the development stage


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Series A, B, and C have to do with the development stage of the companies that are raising capital.

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Series A, B, C Funding: What It All Means and How It Works
Series A, B, and C have nothing to do with the alphabet, rather with the development stage of the companies that are raising capital. Series A, B, and C are necessary ingredients for a business that decides “bootstrapping,” or merely surviving off of the generosity of friends, family and the depth of their own pockets







#investopedia
Bootstrapping describes a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments. An individual is said to be bootstrapping when he attempts to found and build a company from personal finances or from the operating revenues of the new company.

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Bootstrapping Definition | Investopedia
What is 'Bootstrapping' <span>Bootstrapping describes a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments. An individual is said to be bootstrapping when he attempts to found and build a company from personal finances or from the operating revenues of the new company. Bootstrapping also describes a procedure used to calculate the zero-coupon yield curve from market figures. BREAKING DOWN 'Bootstrapping' Bootstrappi




#investopedia
The main differences between rounds A, B, C are the maturity levels of the businesses, the type of investors involved, the purpose of raising capital and how it is ultimately allocated.

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Series A, B, C Funding: What It All Means and How It Works
anies that are raising capital. Series A, B, and C are necessary ingredients for a business that decides “bootstrapping,” or merely surviving off of the generosity of friends, family and the depth of their own pockets, will not suffice. <span>The main differences between rounds are the maturity levels of the businesses, the type of investors involved, the purpose of raising capital and how it is ultimately allocated. The funding rounds begin with a “seed capital” phase and follow with A, B and then C funding. Once you understand the distinction between these rounds, it will be easier to analyze head




#investopedia
The funding rounds begin with a “seed capital” phase and follow with A, B and then C funding.

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Series A, B, C Funding: What It All Means and How It Works
mily and the depth of their own pockets, will not suffice. The main differences between rounds are the maturity levels of the businesses, the type of investors involved, the purpose of raising capital and how it is ultimately allocated. <span>The funding rounds begin with a “seed capital” phase and follow with A, B and then C funding. Once you understand the distinction between these rounds, it will be easier to analyze headlines regarding the startup and investing world, by grasping the context of what exactly a rou




#investopedia
Series A, B, and C funding rounds are merely stepping stones in the process of turning an ingenious idea into a revolutionary global company, ripe for an IPO.

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Series A, B, C Funding: What It All Means and How It Works
g. Once you understand the distinction between these rounds, it will be easier to analyze headlines regarding the startup and investing world, by grasping the context of what exactly a round means for the prospects and direction of a company. <span>Series A, B, and C funding rounds are merely stepping stones in the process of turning an ingenious idea into a revolutionary global company, ripe for an IPO. How Funding Works Investors aren’t just altruistic entrepreneurial-loving businesspeople. Although they may be genuinely interested in the business, as ma




#investopedia
Before each round, a valuation of the company pie is typically released. Valuations derive from considerations such as management, proven track record, market size, and risk.

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Series A, B, C Funding: What It All Means and How It Works
orks Investors aren’t just altruistic entrepreneurial-loving businesspeople. Although they may be genuinely interested in the business, as many angel investors are, they ask for a portion of the business in turn for giving money. <span>Before each round, a valuation of the company pie is typically released. Valuations derive from considerations such as management, proven track record, market size, and risk. To grow the pie’s circumference, more than a few slices need to be given away. In fact, most of the slices will be auctioned off for funding. Many small business owners with a big idea




#investopedia
The capital raised during the seed phase is roughly around $500,000 to 2 million but differs widely on a case by case basis.

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Series A, B, C Funding: What It All Means and How It Works
planting a seed for a tree. This round nurtures the seed or the idea for the startup. The seed hopefully grows into a mature operating business, or “tree,” when enough revenue is generated with the help of perseverance and investor’s wallets. <span>The capital raised during the seed phase is roughly around $500,000 to 2 million but differs widely on a case by case basis. Seed funding raises substantial funds to support the initial market research and development work for the company. This includes figuring out what the product will be and w




#investopedia
Seed funding raises substantial funds to support the initial market research and development work for the company. This includes figuring out what the product will be and who they users or consumers will be. Additionally, the money will help employ a team to do this work. Before this stage, many entrepreneurs are working alone or with just a few business partners.

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Series A, B, C Funding: What It All Means and How It Works
iness, or “tree,” when enough revenue is generated with the help of perseverance and investor’s wallets. The capital raised during the seed phase is roughly around $500,000 to 2 million but differs widely on a case by case basis. <span>Seed funding raises substantial funds to support the initial market research and development work for the company. This includes figuring out what the product will be and who they users or consumers will be. Additionally, the money will help employ a team to do this work. Before this stage, many entrepreneurs are working alone or with just a few business partners. With seed capital, the team will build and launch their product at their target audience. The key players in this round are more of the risk-loving type. Usually, angel inv




#investopedia
After the business has shown some of a track record, Series A funding is useful in optimizing product and user base. Opportunities may be taken to scale the product across different markets.

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Series A, B, C Funding: What It All Means and How It Works
ience. The key players in this round are more of the risk-loving type. Usually, angel investors and early stage venture capital firms dabble in this less formal round of funding. Optimize: Series A <span>After the business has shown some of a track record, Series A funding is useful in optimizing product and user base. Opportunities may be taken to scale the product across different markets. In this round, it’s important to have a plan for developing a business model that will generate long-term profit. Often times, seed startups have great ideas that generate a substantial




#investopedia
In series A round, it’s important to have a plan for developing a business model that will generate long-term profit. Often times, seed startups have great ideas that generate a substantial amount of enthusiastic users, but the company doesn’t know how it will monetize on them.

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Series A, B, C Funding: What It All Means and How It Works
Optimize: Series A After the business has shown some of a track record, Series A funding is useful in optimizing product and user base. Opportunities may be taken to scale the product across different markets. <span>In this round, it’s important to have a plan for developing a business model that will generate long-term profit. Often times, seed startups have great ideas that generate a substantial amount of enthusiastic users, but the company doesn’t know how it will monetize on them. Typically, Series A roun




#investopedia
Typically, Series A rounds raise approximately 2 million to 15 million, but this number has increased on average due to high recent tech industry valuations, or "unicorns".

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Series A, B, C Funding: What It All Means and How It Works
have a plan for developing a business model that will generate long-term profit. Often times, seed startups have great ideas that generate a substantial amount of enthusiastic users, but the company doesn’t know how it will monetize on them. <span>Typically, Series A rounds raise approximately 2 million to 15 million, but this number has increased on average due to high recent tech industry valuations, or "unicorns". The investors involved in the Series A round come from more traditional venture capital firms. Well-known venture capital firms that participate in Series A funding include




#investopedia
The investors involved in the Series A round come from more traditional venture capital firms.

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Series A, B, C Funding: What It All Means and How It Works
any doesn’t know how it will monetize on them. Typically, Series A rounds raise approximately 2 million to 15 million, but this number has increased on average due to high recent tech industry valuations, or "unicorns". <span>The investors involved in the Series A round come from more traditional venture capital firms. Well-known venture capital firms that participate in Series A funding include Sequoia, Benchmark, Greylock, Accel, etc. How exactly the process works, differs slightly from




#investopedia
Well-known venture capital firms that participate in Series A funding include Sequoia, Benchmark, Greylock, Accel, etc.

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Series A, B, C Funding: What It All Means and How It Works
million to 15 million, but this number has increased on average due to high recent tech industry valuations, or "unicorns". The investors involved in the Series A round come from more traditional venture capital firms. <span>Well-known venture capital firms that participate in Series A funding include Sequoia, Benchmark, Greylock, Accel, etc. How exactly the process works, differs slightly from seed capital rounds, since in Series A rounds there can be more politics at play. A few firms lead the pack, and may st




#investopedia
How exactly the process works, differs slightly from seed capital rounds, since in Series A rounds there can be more politics at play.

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Series A, B, C Funding: What It All Means and How It Works
. The investors involved in the Series A round come from more traditional venture capital firms. Well-known venture capital firms that participate in Series A funding include Sequoia, Benchmark, Greylock, Accel, etc. <span>How exactly the process works, differs slightly from seed capital rounds, since in Series A rounds there can be more politics at play. A few firms lead the pack, and may strategically do so. Angel investors also invest but tend to have much less influence in this funding round. B Is For Build &




#investopedia #series-a-b-c
B Is For Build

Series B rounds are all about taking businesses to the next level, past the development stage. Investors help startups get there by expanding market reach. There’s already a big pie that’s been cooking up in Seed and Series A rounds. In Series B, venture capitalists have more of vision around what the pie will look like, and how big of a slice they hope to obtain.

Building a winning product and growing a team requires quality talent acquisition. Bulking up on business development, sales, advertising, tech, support, and other people costs a firm a few pennies. Estimated capital raised hovers around $7 to 10 million.

Series B appears similar to Series A in terms of processes and key players. Series B is often led by many of the same characters as the earlier round, such as Sequoia Capital. The difference with Series B is the addition of a new wave of other VC firms that specialize in later stage investing.

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Series A, B, C Funding: What It All Means and How It Works
ed capital rounds, since in Series A rounds there can be more politics at play. A few firms lead the pack, and may strategically do so. Angel investors also invest but tend to have much less influence in this funding round. <span>B Is For Build Series B rounds are all about taking businesses to the next level, past the development stage. Investors help startups get there by expanding market reach. There’s already a big pie that’s been cooking up in Seed and Series A rounds. In Series B, venture capitalists have more of vision around what the pie will look like, and how big of a slice they hope to obtain. Building a winning product and growing a team requires quality talent acquisition. Bulking up on business development, sales, advertising, tech, support, and other people costs a firm a few pennies. Estimated capital raised hovers around $7 to 10 million. Series B appears similar to Series A in terms of processes and key players. Series B is often led by many of the same characters as the earlier round, such as Sequoia Capital. The difference with Series B is the addition of a new wave of other VC firms that specialize in later stage investing. Let’s Scale: Series C In Series C rounds, investors inject capital into the meat of successful businesses, in efforts to receive more than double that am




#investopedia #series-a-b-c
Series B rounds are all about taking businesses to the next level, past the development stage. Investors help startups get there by expanding market reach.

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B Is For Build Series B rounds are all about taking businesses to the next level, past the development stage. Investors help startups get there by expanding market reach. There’s already a big pie that’s been cooking up in Seed and Series A rounds. In Series B, venture capitalists have more of

Original toplevel document

Series A, B, C Funding: What It All Means and How It Works
ed capital rounds, since in Series A rounds there can be more politics at play. A few firms lead the pack, and may strategically do so. Angel investors also invest but tend to have much less influence in this funding round. <span>B Is For Build Series B rounds are all about taking businesses to the next level, past the development stage. Investors help startups get there by expanding market reach. There’s already a big pie that’s been cooking up in Seed and Series A rounds. In Series B, venture capitalists have more of vision around what the pie will look like, and how big of a slice they hope to obtain. Building a winning product and growing a team requires quality talent acquisition. Bulking up on business development, sales, advertising, tech, support, and other people costs a firm a few pennies. Estimated capital raised hovers around $7 to 10 million. Series B appears similar to Series A in terms of processes and key players. Series B is often led by many of the same characters as the earlier round, such as Sequoia Capital. The difference with Series B is the addition of a new wave of other VC firms that specialize in later stage investing. Let’s Scale: Series C In Series C rounds, investors inject capital into the meat of successful businesses, in efforts to receive more than double that am




#investopedia #series-a-b-c
Building a winning product and growing a team requires quality talent acquisition. Bulking up on business development, sales, advertising, tech, support, and other people costs a firm a few pennies. Estimated capital raised hovers around $7 to 10 million.

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ding market reach. There’s already a big pie that’s been cooking up in Seed and Series A rounds. In Series B, venture capitalists have more of vision around what the pie will look like, and how big of a slice they hope to obtain. <span>Building a winning product and growing a team requires quality talent acquisition. Bulking up on business development, sales, advertising, tech, support, and other people costs a firm a few pennies. Estimated capital raised hovers around $7 to 10 million. Series B appears similar to Series A in terms of processes and key players. Series B is often led by many of the same characters as the earlier round, such as Sequoia Capit

Original toplevel document

Series A, B, C Funding: What It All Means and How It Works
ed capital rounds, since in Series A rounds there can be more politics at play. A few firms lead the pack, and may strategically do so. Angel investors also invest but tend to have much less influence in this funding round. <span>B Is For Build Series B rounds are all about taking businesses to the next level, past the development stage. Investors help startups get there by expanding market reach. There’s already a big pie that’s been cooking up in Seed and Series A rounds. In Series B, venture capitalists have more of vision around what the pie will look like, and how big of a slice they hope to obtain. Building a winning product and growing a team requires quality talent acquisition. Bulking up on business development, sales, advertising, tech, support, and other people costs a firm a few pennies. Estimated capital raised hovers around $7 to 10 million. Series B appears similar to Series A in terms of processes and key players. Series B is often led by many of the same characters as the earlier round, such as Sequoia Capital. The difference with Series B is the addition of a new wave of other VC firms that specialize in later stage investing. Let’s Scale: Series C In Series C rounds, investors inject capital into the meat of successful businesses, in efforts to receive more than double that am




Article 1439022058764

Government-Assisted Foreign Buyer Financing (Eximbank USA)
#eximbank #octopus #usa

International sales of high-value capital goods or services and exports to large-scale projects, which require medium- or long-term financing, often pose special challenges to exporters as commercial lenders may be reluctant to lend large sums to foreign buyers, especially those in developing countries, for extended periods. One viable solution to these challenges is foreign buyer financing offered by the U.S. Export-Import Bank (Ex-Im Bank). As the official U.S. export credit agency, Ex-Im Bank supports the purchases of U.S. goods and services by creditworthy foreign buyers who are unable to obtain the financing they need through traditional commercial sources. Ex-Im Bank does not compete with commercial lenders but provides products that fill gaps in trade financing by assuming country and credit risks that the private sector is unable or unwilling to accept. With Ex-Im Bank’s foreign buyer financing, U.S. exporters can turn their business opportunities into real transactions and get paid cash on del



#eximbank #octopus #usa
As the official U.S. export credit agency, Ex-Im Bank supports the purchases of U.S. goods and services by creditworthy foreign buyers who are unable to obtain the financing they need through traditional commercial sources.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
ers may be reluctant to lend large sums to foreign buyers, especially those in developing countries, for extended periods. One viable solution to these challenges is foreign buyer financing offered by the U.S. Export-Import Bank (Ex-Im Bank). <span>As the official U.S. export credit agency, Ex-Im Bank supports the purchases of U.S. goods and services by creditworthy foreign buyers who are unable to obtain the financing they need through traditional commercial sources. Ex-Im Bank does not compete with commercial lenders but provides products that fill gaps in trade financing by assuming country and credit risks that the private sector is unable or unw




#eximbank #octopus #usa
Ex-Im Bank does not compete with commercial lenders but provides products that fill gaps in trade financing by assuming country and credit risks that the private sector is unable or unwilling to accept.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
Bank (Ex-Im Bank). As the official U.S. export credit agency, Ex-Im Bank supports the purchases of U.S. goods and services by creditworthy foreign buyers who are unable to obtain the financing they need through traditional commercial sources. <span>Ex-Im Bank does not compete with commercial lenders but provides products that fill gaps in trade financing by assuming country and credit risks that the private sector is unable or unwilling to accept. With Ex-Im Bank’s foreign buyer financing, U.S. exporters can turn their business opportunities into real transactions and get paid cash on delivery and acceptance of the goods or servi




#eximbank #octopus #usa
With Ex-Im Bank’s foreign buyer financing, U.S. exporters can turn their business opportunities into real transactions and get paid cash on delivery and acceptance of the goods or services.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
through traditional commercial sources. Ex-Im Bank does not compete with commercial lenders but provides products that fill gaps in trade financing by assuming country and credit risks that the private sector is unable or unwilling to accept. <span>With Ex-Im Bank’s foreign buyer financing, U.S. exporters can turn their business opportunities into real transactions and get paid cash on delivery and acceptance of the goods or services. Key Points Government-assisted foreign buyer financing helps turn export opportunities, especially in high-risk emerging markets, into real transactions for




#eximbank #octopus #usa
Government-assisted foreign buyer financing helps turn export opportunities, especially in high-risk emerging markets, into real transactions for large U.S. corporations and established medium-sized companies, as well as their small business suppliers.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
ng to accept. With Ex-Im Bank’s foreign buyer financing, U.S. exporters can turn their business opportunities into real transactions and get paid cash on delivery and acceptance of the goods or services. Key Points <span>Government-assisted foreign buyer financing helps turn export opportunities, especially in high-risk emerging markets, into real transactions for large U.S. corporations and established medium-sized companies, as well as their small business suppliers. Creditworthy foreign buyers can obtain loans needed for purchases of U.S. goods and services, especially high-value capital goods or services and exports to large-scale pr




#eximbank #octopus #usa
Creditworthy foreign buyers can obtain loans needed for purchases of U.S. goods and services, especially high-value capital goods or services and exports to large-scale projects.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
ign buyer financing helps turn export opportunities, especially in high-risk emerging markets, into real transactions for large U.S. corporations and established medium-sized companies, as well as their small business suppliers. <span>Creditworthy foreign buyers can obtain loans needed for purchases of U.S. goods and services, especially high-value capital goods or services and exports to large-scale projects. This type of financing provides direct loans to foreign buyers at a fixed interest rate or provides guarantees for term financing offered by commercial lenders. &#1




#eximbank #octopus #usa
This type of financing provides direct loans to foreign buyers at a fixed interest rate or provides guarantees for term financing offered by commercial lenders.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
as their small business suppliers. Creditworthy foreign buyers can obtain loans needed for purchases of U.S. goods and services, especially high-value capital goods or services and exports to large-scale projects. <span>This type of financing provides direct loans to foreign buyers at a fixed interest rate or provides guarantees for term financing offered by commercial lenders. Financing is available for medium-term (up to 5 years) and long-term (generally up to 10 years) transactions. CHARACTERISTICS OF GOVERNMENT‑ASSISTED FORE




#eximbank #octopus #usa
Financing is available for medium-term (up to 5 years) and long-term (generally up to 10 years) transactions.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
oods or services and exports to large-scale projects. This type of financing provides direct loans to foreign buyers at a fixed interest rate or provides guarantees for term financing offered by commercial lenders. <span>Financing is available for medium-term (up to 5 years) and long-term (generally up to 10 years) transactions. CHARACTERISTICS OF GOVERNMENT‑ASSISTED FOREIGN BUYER FINANCING Applicability Suitable for the export of high-value capital goods or services or large-scale




#eximbank #octopus #usa
CHARACTERISTICS OF GOVERNMENT‑ASSISTED FOREIGN BUYER FINANCING

Applicability Suitable for the export of high-value capital goods or services or large-scale projects that require extended-term financing

Risk Risk is transferred to Ex-Im Bank and to the foreign buyer who is required to make a 15 percent cash down payment to the exporter

Pros „ Buyer financing as part of an attractive sales package „ Cash payment upon shipment of the goods or services

Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
rs at a fixed interest rate or provides guarantees for term financing offered by commercial lenders. Financing is available for medium-term (up to 5 years) and long-term (generally up to 10 years) transactions. <span>CHARACTERISTICS OF GOVERNMENT‑ASSISTED FOREIGN BUYER FINANCING Applicability Suitable for the export of high-value capital goods or services or large-scale projects that require extended-term financing Risk Risk is transferred to Ex-Im Bank and to the foreign buyer who is required to make a 15 percent cash down payment to the exporter Pros „ Buyer financing as part of an attractive sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans




Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans
#eximbank #key-common-features #octopus #usa

Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section).

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
Ex-Im Bank assists U.S. exporters by:

(a) providing direct loans; or

(b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services.

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Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing.

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Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expense

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses.

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worthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. <span>Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash pay

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing.

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projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. <span>There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract.

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of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. <span>Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment term

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
Repayment terms up to five years are available for exports of capital goods and services

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r maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. <span>Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not e

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors).

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buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. <span>Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Fina

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities.

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t. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). <span>Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government polic

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
goods must meet the Bank’s foreign content requirements

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ports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, <span>goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-common-features #octopus #usa
Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section).

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up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, <span>Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). <span><body><html>

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
e sales package „ Cash payment upon shipment of the goods or services Cons „ Subject to certain restrictions for U.S. government policy reasons „ Possible lengthy process of approving financing <span>Key Common Features of Ex-Im Bank’s Loan Guarantees and Direct Loans Ex-Im Bank assists U.S. exporters by: (a) providing direct loans; or (b) guaranteeing repayment of commercial loans to creditworthy foreign buyers for purchases of U.S. goods and services. These loans are generally used to finance the purchase of high-value capital equipment or services or exports to large-scale projects that require medium- or long-term financing. Ex-Im Bank’s foreign buyer financing is also used to finance the purchase of refurbished equipment, software, and certain banking and legal fees, as well as some local costs and expenses. There is no minimum or maximum limit to the size of the export sale that may be supported by the Bank’s foreign buyer financing. Ex-Im Bank requires the foreign buyer to make a cash payment to the exporter equal to at least 15 percent of the U.S. supply contract. Repayment terms up to five years are available for exports of capital goods and services. Transportation equipment and exports to large-scale projects may be eligible for repayment terms up to 10 years (12 to 18 years for certain sectors). Military items are generally not eligible for Ex-Im Bank financing nor are sales to foreign military entities. In addition, goods must meet the Bank’s foreign content requirements. Finally, Ex-Im Bank financing may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guarant




#eximbank #key-features-of-loan-guarantees #octopus #usa

Key Features of Ex-Im Bank Loan Guarantees

Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank.

Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price.

Interest rates are negotiable, and are usually floating and lower than fixed rates.

Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies.

Guaranteed loans have a faster documentation process with the assistance of commercial banks.

There are no U.S. vessel shipping requirements for amounts less than $20 million.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
g may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). <span>Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans supp




#eximbank #key-features-of-loan-guarantees #octopus #usa
Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank

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Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually flo

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
g may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). <span>Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans supp




#eximbank #key-features-of-loan-guarantees #octopus #usa
Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price.

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Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are availab

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
g may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). <span>Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans supp




#eximbank #key-features-of-loan-guarantees #octopus #usa
Interest rates are negotiable, and are usually floating and lower than fixed rates.

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s Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. <span>Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation proce

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
g may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). <span>Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans supp




#eximbank #key-features-of-loan-guarantees #octopus #usa
Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies.

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Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually floating and lower than fixed rates. <span>Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less t

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
g may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). <span>Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans supp




#eximbank #key-features-of-loan-guarantees #octopus #usa
Guaranteed loans have a faster documentation process with the assistance of commercial banks.

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act price. Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. <span>Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. <span><body><html>

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
g may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). <span>Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans supp




#eximbank #key-features-of-loan-guarantees #octopus #usa
There are no U.S. vessel shipping requirements for amounts less than $20 million.

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Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. <span>There are no U.S. vessel shipping requirements for amounts less than $20 million. <span><body><html>

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
g may not be available in certain countries and certain terms for U.S. government policy reasons (for more information, see the Country Limitation Schedule posted on the Bank’s Web site, www.exim.gov, under the “Apply” section). <span>Key Features of Ex-Im Bank Loan Guarantees Loans are made by commercial banks and repayment of these loans is guaranteed by Ex-Im Bank. Guaranteed loans cover 100 percent of the principal and interest for 85 percent of the U.S. contract price. Interest rates are negotiable, and are usually floating and lower than fixed rates. Guaranteed loans are fully transferable, can be securitized and are available in certain foreign currencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans supp




Key Features of Ex-Im Bank Direct Loans
#eximbank #key-features-of-direct-loans #octopus #usa

Fixed-rate loans are provided directly to creditworthy foreign buyers.

Direct loans support 85 percent of the U.S. contract price.

Exporters will be paid in full upon disbursement of a loan to the foreign buyers.

Generally, goods shipped by sea must be carried exclusively on U.S. vessels.

Direct loans are best used when the buyer insists on a fixed rate.

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
rrencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. <span>Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax.




#eximbank #key-features-of-direct-loans #octopus #usa
Fixed-rate loans are provided directly to creditworthy foreign buyers.

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Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Genera

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
rrencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. <span>Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax.




#eximbank #key-features-of-direct-loans #octopus #usa
Direct loans support 85 percent of the U.S. contract price.

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Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. &#

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
rrencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. <span>Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax.




#eximbank #key-features-of-direct-loans #octopus #usa
Exporters will be paid in full upon disbursement of a loan to the foreign buyers.

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Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. </sp

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
rrencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. <span>Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax.




#eximbank #key-features-of-direct-loans #octopus #usa
Generally, goods shipped by sea must be carried exclusively on U.S. vessels.

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ate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. <span>Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. <span><body><html>

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
rrencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. <span>Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax.




#eximbank #key-features-of-direct-loans #octopus #usa
Direct loans are best used when the buyer insists on a fixed rate.

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support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. <span>Direct loans are best used when the buyer insists on a fixed rate. <span><body><html>

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
rrencies. Guaranteed loans have a faster documentation process with the assistance of commercial banks. There are no U.S. vessel shipping requirements for amounts less than $20 million. <span>Key Features of Ex-Im Bank Direct Loans Fixed-rate loans are provided directly to creditworthy foreign buyers. Direct loans support 85 percent of the U.S. contract price. Exporters will be paid in full upon disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax.




Fees and Ex-Im Bank Contact Information
#eximbank #fees #octopus #usa

Letter of interest: $50 for online application; $100 for paper application via mail and fax.

Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000.

Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan.

Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan.

Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk.

For more information about loans from Ex-Im Bank, visit its Web site at www.exim.gov or call 1-800-565-EXIM (3946).

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Government-Assisted Foreign Buyer Financing (Eximbank USA)
disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. <span>Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan. Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk. For more information about loans from Ex-Im Bank, visit its Web site at www.exim.gov or call 1-800-565-EXIM (3946). <span><body><html>




#eximbank #fees #octopus #usa
Letter of interest: $50 for online application; $100 for paper application via mail and fax.

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Letter of interest: $50 for online application; $100 for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the l

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. <span>Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan. Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk. For more information about loans from Ex-Im Bank, visit its Web site at www.exim.gov or call 1-800-565-EXIM (3946). <span><body><html>




#eximbank #fees #octopus #usa
Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000.

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Letter of interest: $50 for online application; $100 for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. Direct loan commitment: 0.5 percent per year on the undisbursed balance of

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. <span>Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan. Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk. For more information about loans from Ex-Im Bank, visit its Web site at www.exim.gov or call 1-800-565-EXIM (3946). <span><body><html>




#eximbank #fees #octopus #usa
Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan.

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head><head> Letter of interest: $50 for online application; $100 for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan. Exposure fee: varies, depending upon tenor, country risk, and buyer credit

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. <span>Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan. Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk. For more information about loans from Ex-Im Bank, visit its Web site at www.exim.gov or call 1-800-565-EXIM (3946). <span><body><html>




#eximbank #fees #octopus #usa
Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan.

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for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. <span>Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan. Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk. For more information about loans from Ex-Im Bank, visit its Web

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. <span>Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan. Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk. For more information about loans from Ex-Im Bank, visit its Web site at www.exim.gov or call 1-800-565-EXIM (3946). <span><body><html>




#eximbank #fees #octopus #usa
Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk.

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he financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan. <span>Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk. For more information about loans from Ex-Im Bank, visit its Web site at www.exim.gov or call 1-800-565-EXIM (3946). <span><body><html>

Original toplevel document

Government-Assisted Foreign Buyer Financing (Eximbank USA)
disbursement of a loan to the foreign buyers. Generally, goods shipped by sea must be carried exclusively on U.S. vessels. Direct loans are best used when the buyer insists on a fixed rate. <span>Fees and Ex-Im Bank Contact Information Letter of interest: $50 for online application; $100 for paper application via mail and fax. Preliminary commitment: 0.1 of 1 percent of the financed amount up to $25,000. Guarantee commitment: 0.125 percent per year on the undisbursed balance of the loan. Direct loan commitment: 0.5 percent per year on the undisbursed balance of the loan. Exposure fee: varies, depending upon tenor, country risk, and buyer credit risk. For more information about loans from Ex-Im Bank, visit its Web site at www.exim.gov or call 1-800-565-EXIM (3946). <span><body><html>




GPCR–CoINPocket, a novel contact-informed neighboring pocket metric of GPCR binding-site similarity that is informed by patterns of ligand–residue interactions observed in crystallographically characterized GPCRs.

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Flashcard 1439095983372

Tags
#vocabulary
Question

ubiquitous

Answer
adjective

1.existing or being everywhere, especially at thesame time; omnipresent:


statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill






homologs are traditionally determined by sequence alignment and calculation of amino acid identity or similarity at each posi- tion.

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Here we sought to further refine the comparisons of GPCR binding sites by analyzing both the persis- tence and the strength of residue–ligand interactions observed across the GPCR Pocketome—the set of annotated GPCR binding pockets that have been crystallographically characterized to date 16 . By enriching the binding-site comparisons with ligand contact strengths, a method we term GPCR–CoINPocket (GPCR contact- informed neighboring pocket), we organized and clustered all class A GPCRs into a hierarchical structure that closely reproduced pre- viously characterized pharmacological relationships.

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residue contact strengths (1) are distance based, not energy based; (2) rep- resent a coarse-grain approximation of actual interaction energies; (3) have improved signal-to-noise ratios through analysis of mul- tiple ligands and crystallographic conformational ensembles; and (4) provide a reasonable compromise between a binary definition of interatomic contact based on a cut-off interatomic distance and the complexities and ambiguities of accurate energy calculations for conformationally variable crystallographic ensembles.

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our method is advanced in that it accounts for interaction magnitudes and in ‘inverting’ the perspective from ligand to binding site.

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Finally, despite the peptide melanocortin receptors (MCR) being phylogenetically related to lysophospholipid receptors, they exhibited a high degree of similarity with other peptide receptors, such as the oxytocin and vasopressin receptors; this corroborates the recent discovery of activity of MCR agonists on oxytocin-mediated signaling pathway

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GPCR–CoINPocket correctly predicted the relationship between sst 5 and various biogenic amine receptors with very high scores (Tab le 1), reflecting the fact that an aspartic acid at position 3×32 is not only conserved across these receptors but is also one of the strongest contacts found in GPCRs

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Likewise, a phenylalanine residue at position 6×52 is also conserved across these receptors, perhaps explaining off-target activity of H 1 receptor ligands at sst 5 receptors

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A high degree of similar- ity was detected between the melatonin MT 2 and neuropeptide Y

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the opioid, CCR3 and other chemokine receptors con- sistently ranked as pharmacological neighbors of the muscarinic receptors, confirming their previously described pharmacological similarities

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ChEMBL data is inherently biased toward closest phyloge- netic relatives because of the common practice of testing ligand selectivity profiles only on homologous receptors

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Surrogate ligands are most needed for these unexplored receptors, as they enable both the biochemical characterization of the receptors in vitro and ligand-guided homol- ogy model refinement in silico.

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