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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).
Cost of Debt (k ) : This describes the rate of interest payable on debt. The cost of debt funds may be calculated when the debt is redeemable or irredeemable. therefore, when deb
Q. Illustrate the method of appraising capital investments? One of the potency of internal rate of return (IRR) as a method of appraising capital investments is that it is a di
Explain the term "present value of the firm's operations" (also known as Enterprise Value ). What does this number represent? The present value of the company's free cash flo
This question tested the core area of specifically gradually consolidation and acquisitions (control to control). The principle of calculation of goodwill at the date where control
Monte-Carlo Simulation Let us, for a shortwhile, leave the illustration for determining the price and consider a simpler illustration for understanding the Monte-Carlo method
strengths and weakness
Parallel T rade It is a form of countertrade that involves the execution of 2 distinct and individually enforceable contracts: the first for the sale of goods by an exp
Coverage ratios give the relationship between the financial charges of a firm and its ability to service them. The four most commonly used coverage ratios are:
discuss the applicability of an operation cycle in a vegetation business
Angel Athletics is trying to determine its optimal capital structure. The company's capital structure consists of debt and common stock. In order to estimate the cost of debt, the
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