Definition of Demand Dividends Demand dividends are an investment vehicle where the investee makes periodic payments to the investor based on a percentage of free cash flow, up to an agreed upon multiple of the investment.1 Demand dividends factor the fact that an enterprise can grow revenue without generating cash. Payments are made after a…
Author: Yejee Lee
Royalty Financing: An Emerging Alternative to Equity Financing
Definition of Royalty Financing Royalty financing is an investment vehicle where the investor lends money to investees against its future revenue streams.1 The investor is repaid via royalties, a regular stream of payments that are typically calculated based on a percentage of the company’s gross revenue.2 Since repayments are based on a percentage of revenues,…
How the Foreign Account Tax Compliance Act Will Impact Foreign Financial Institutions and How to Incentivize Compliance
What is FACTA and who is affected by it? The Foreign Account Tax Compliance Act (FATCA), coming into effect in July 2014, requires any Foreign Financial Institution (FFI) that elects to comply with the Act to do three things: 1) identify its U.S. account holders; 2) annually report the account holders to the IRS; and 3) withhold…