Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
leveragesleverages are of prime importance in the analysis of a companies risk they give a good picture of the business financial and the overall
market value ratiosprice-earnings ratiope ratio shows how much investors are willing to pay for earnings per share of the companymarket-to-book value
profitability ratios profit margin it is a measure of the profit margin of the company this is important to gauge the financial position of the
asset management ratios turnover ratios receivables turnover ratio it is a measure of receivables turnover payables turnover ratio it is
long-term solvency ratios financial leverage ratios debt-equity ratio total debt total equityagrave it is a measure of a companys debt
ratio calculation a financial ratio is an index that relates two accounting numbers and is obtained by dividing one number by the othervarious
capital asset pricing model capm capital asset pricing model capm is a model which utilizes the measure of systematic risk b to price assets the
beta valuerisk is an important consideration while investing in any security it is the possibility that realised returns will be less than the
valuation methods2 - year methodperpetual growth methodconstant growth methodzero growth methodgrowth phasesvaluation model constant growth
application of shareholder value maximization framework factors affecting shareholders value arecapital market conditionsprofitability agrave
significant performance indicators following are the most commonly used performance indicators used to assess the financial and general health of
to calculate the cost of capital we will use the weighted average cost of capital wacc formula wacc ev x
abnormal earnings valuation modelabnormal earnings valuation model is a method to analyse the value of the firm the value of the firm can be the sum
common size financial statementcommon size financial statement is a company financial statement that shows all items as percentages of a common
debenturea kind of debt instrument that is not secured by physical any asset or collateral is known as debenture debentures are backed by the
valuationthe process of finding out the current value of an asset or company is known as valuation there are various techniques that can be
a futures contract is a contract to purchase and sell a particular asset at a fixed price in a future time period there are two parties for every
call-put parityp s c e 11i n where p the market price of the put s the market price of the stock c
collara collar can be established by holding a share along with purchasing a protective put and writing a covered call where both options at
protected puta protected put would involve a long put and a long stockfor example - ongcunderlying stock rs 809buy mar rs 900 put rs688 total
simple arbitragethe easiest arbitrage opportunities in the option market exist when options violate simple pricing bounds no option for example
a regional division of a water company is upgrading its water filtration amp purification plant the new system is expected to last 20 years amp to
report based on capital investment plans to analyze the capital investment plans of hatsun agro products limited hapl we shall look at the
lso from the auditors report they have reported that the company has used funds raised on short-term basis for long-term investment. the company has
example based on valuation of sharesshare capital details amp types of sharehatsun agro private limited hapl as on march 2008 had a total authorized