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Define the term- Earnings per share (EPS)
EPS = Profit available to ordinary shareholders (PAT) / Weighted average number of shares in issue(p per share)
This ratio illustrates profitability of every share, i.e. amount of potential dividend available per share. EPS is a very significant ratio and is published in the annual accounts of companies (IAS 33).
These were first issued during a period of extreme interest rate volatility in the late 1970s. Floating-rate bonds, which are also known as variable-rate bonds or simpl
The price charged when one segment of an organization provides goods or services to another segment of the organization.
Suppose you have recently been contracted as a financial consultant to a London-based engineering company, Alpha Products Plc. The company uses three components as part of their pr
A firm has $700 in inventory, $600 in fixed assets, $600 in accounts receivables, $800 in accounts payable, and $50 in cash. What is the amount of the present assets?
Internal Rate of Retur n The discount rate at which the net current value (the value of all future cash flows, in excess of the real investment, expressed in today's d
What are the Government Securities Government is one of the biggest borrowers from capital and money market. We have already taken a look at money market securities offered by
What is Financial index & commodity index? Method of index uses in calculation? Weighted average method? How to calculate index?
Rationale for corporate governance The organization of the world economy (particularly in present years) has seen corporate governance gain prominence mostly since: Insti
mini-case chapter 15:payout policy Megginson, Smart, Graham
What are the pros and cons of commercial paper relative to bank loans for a company seeking short-term financing? Commercial paper is generally a cheaper source of short-term f
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