Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Accounting Rate of Return Method or ARR
This method utilizes accounting profits from financial status to assess the viability of investment proposal via diving the average income after tax via average investment. The investment would be equivalent to the original investment in addition the salvage value divided with two or the initial investment divided with two or dividing the total of the investment book value after depreciating with the life of the project. This method is known as also book value method or financial statement method. The rate of return on asset method or adjusted rate of return method is given via:
ARR = ( Average income/ Average investment) x 100
or (Average income - Average depreciation)/Initial investment
Not like PBP, this method will ascertain the profitability of an investment and it will provide results that are consistent along with those given via return ratios.
Example of Asset Based Valuation Extracted information from the books of Kent Limited. Current liabilities Bank overdraft Sh. 300,000
Dividend Cover Ratio Dividend cover = EPS/ DPS = Earning to ordinary shares/Dividend paid This signifies the number of times dividend can be paid from earnin
The scope of supply chain management Supply chain management includes the determination of suppliers; distributors, distribution channels and warehousing; manufacturing infor
Example of Dividend Basis Valuation Company Laxmi Synthetics pays a dividend of 10% on its Sh.60 par value ordinary shares. This company uses a discount rate of 15%. A
Advantages of Using Debt Finance Interest on debt is a tax permit able expense and as that it is reduced via the tax allowance. The cost of debt is fixed regardless of
The Mountain Fresh Company had earnings per share (EPS) of $6.32 in 2006 and $11.48 in 2011. The company pays out 30 percent of its earnings as dividends per share (DPS), and the
Imagine Joy is the sales manager in a computer retail company and has summarized for each sales transaction the following information: Sales person Date of sales Uni
Three of these companies have bonds that carry investment - grade ratings. The other 3 companies carry junk - bond ratings. Judging by the information in the table, which 3 compani
what are the qualitative factors to be considered when deciding on product mix
You have just taken out a $220,000 loan for your house at an APR of 7.5% and a 30-year term. Payments are to be made monthly . Two years from now, you refinance at an APR of 5.5%
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd