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!
Example of Earnings Yield Valuation
Estimated maintainable earnings are £240,000 per annum; rate of return required is 25 percent.
Calculate the value of the business.
Value MV) = E/ EY x 100
= 240,000/0.25 x 100
M.V. = £960,000
This method can be transformed into the theoretical base, particularly if the business is going to relate.
PV = C/i (1-(1/ (1+0.25) N))
Note as
Like N approaches ∞
PV = C/r
= 240,000/ 0.25
= £960,000
Uncertainty and Safety Stocks Usually requirements may not be certain and thus the firm holds safety stock to safeguard stock out cases.The safety stock guards against delays
You are asked to select three variables for a sensitivity analysis of weighted average cost of capital, what would you choose and why? Weighted average cost of capital is th
Legal Rules - Factors Influencing Dividend a) Net purchase rule States that dividend may be paid from company's profit either past or present. b) Capital impairment r
Give an example of how capital budgeting decisions affect a company's value, strategy or operations. Companies always tend to look for capex projects which will add value to
Explain importance terms of Money, Banking, and the Federal Reserve System. Importance terms of Money, Banking, and the Federal Reserve System: a. The several roles money pl
Capital Market Authority (CMA) Was established in 1990 with an Act of Parliament to assist, in creation of a conducive environment, for growth and development of capital marke
What are the financial intermediaries? Financial Intermediaries: a. Mutual funds b. Pension funds c. Life insurance companies d. Banks
Stewardship Accounting Shareholders contribute capital that is provided to the directors that they employ and at the end of each accounting year render an explanation on the a
A bondholder buys a bond maturing in two years for Rs. 120 and earns Rs.15 per annum as interest. His YTM is ______ %.
How is the channelling of funds from savers to spenders very important? The channelling of funds by savers to spenders is very significant for two purposes: • One, lender-sa
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