The document defines and provides formulas for various financial ratios used to evaluate companies, including liquidity ratios, leverage ratios, profitability ratios, return ratios, valuation ratios, and risk measures. It also defines financial terms related to raising capital, costs of capital, discounted cash flow analysis, and company valuation approaches.
Capital Structure Theories, Valuation of Shares & Efficient Market HypothesisSwaminath Sam
ย
The presentation contains details on Net Income, Net Operating, Traditional and Modigliani & Miller Approach; valuation of shares i.e., different models for valuation of shares in particular CAPM; Efficient Market Hypothesis (EMH) & forms of hypothesis
Capital Structure Theories, Valuation of Shares & Efficient Market HypothesisSwaminath Sam
ย
The presentation contains details on Net Income, Net Operating, Traditional and Modigliani & Miller Approach; valuation of shares i.e., different models for valuation of shares in particular CAPM; Efficient Market Hypothesis (EMH) & forms of hypothesis
Security analysis comprises of an examination and evaluation of the various factors affecting the value of a security. Security analysis is about valuing the assets, debt, warrants, and equity of companies from the perspective of outside investors using publicly available information. The security analyst must have a through understanding of financing statements, which are an important source of this information. As such, the ability to value equity securities requires cross-disciplinary knowledge in both finance and financial accounting. While there is much overlap between the analytical tools used in security analysis and those used in corporate finance, security analysis tends to take the perspective of potential investors, whereas corporate finance tends to take an inside perspective such as that of a corporate financial manager.
Security analysis comprises of an examination and evaluation of the various factors affecting the value of a security. Security analysis is about valuing the assets, debt, warrants, and equity of companies from the perspective of outside investors using publicly available information. The security analyst must have a through understanding of financing statements, which are an important source of this information. As such, the ability to value equity securities requires cross-disciplinary knowledge in both finance and financial accounting. While there is much overlap between the analytical tools used in security analysis and those used in corporate finance, security analysis tends to take the perspective of potential investors, whereas corporate finance tends to take an inside perspective such as that of a corporate financial manager.
STOCKS AND BONDS
COMMISSION is A payment to an agent or sales person based on the value of goods bought and sold;
Is found by finding the percentage of a sale
Brokerโs fee or Brokerage fee
is a fee charged by a broker(dealer) to execute transactions or provide specialized services.
Examples include fees charged such as financial services, insurance, real estate, and delivery services.
Rate-This is the percentage or fixed payment associated with a certain amount of sale.
Can be written with symbol % or in Decimal form
Solved through dividing sales from the commission
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...The Capital Network
ย
In todayโs difficult investment climate, entrepreneurs should have the maximum understanding of the impact of proposed financing โ before they talk to investors.
This session will not only explain terms such as:
pre-money
fully diluted equity
option pool
percentage ownership
weighted average anti-dilution
full ratchet anti-dilution
per share price
but will show you the exact numerical consequences of these difficult negotiating points.
Also in this workshop lunch, you will learn how to build your own capitalization table in a simple, but powerful spreadsheet. BYOL โ Bring your own laptop
Once you have your basic cap table built, we will discuss in detail, how to use this tool to understand the dilutive impact of various investment decisions such as:
stock options
restricted stock
early stage angel or venture capital investment
down-rounds
anti-dilution provisions
and more...
how can i use my minded pi coins I need some funds.DOT TECH
ย
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. ๐ I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
ย
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
ย
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ โ 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
ย
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
what is the future of Pi Network currency.DOT TECH
ย
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
What website can I sell pi coins securely.DOT TECH
ย
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
ย
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
NO1 Uk Rohani Baba In Karachi Bangali Baba Karachi Online Amil Baba WorldWide...Amil baba
ย
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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Introduction to Indian Financial System ()Avanish Goel
ย
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
The European Unemployment Puzzle: implications from population agingGRAPE
ย
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
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Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
1. Liquidity Ratio
This reflects a company ability to meet its short term obligations
1) ๐ธ๐๐๐๐ ๐น๐๐๐๐ =
๐ช๐๐๐+๐จ๐๐๐๐๐๐๐ ๐น๐๐๐๐๐๐๐๐๐๐
๐ป๐๐๐๐ ๐ช๐๐๐๐๐๐ ๐ณ๐๐๐๐๐๐๐๐๐๐
2) ๐ช๐๐๐๐๐๐ ๐น๐๐๐๐ =
๐ป๐๐๐๐ ๐ช๐๐๐๐๐๐ ๐จ๐๐๐๐๐
๐ป๐๐๐๐ ๐ช๐๐๐๐๐๐ ๐ณ๐๐๐๐๐๐๐๐๐๐
3) ๐ช๐๐๐ ๐น๐๐๐๐ =
๐ช๐๐๐
๐ป๐๐๐๐ ๐ช๐๐๐๐๐๐ ๐ณ๐๐๐๐๐๐๐๐๐๐
Leverage Ratio
This reflects firmโs Debt financing
1) Debt/Equity Ratio
2) Interest Coverage Ratio
3) Debt Service Coverage Ratio
Profitability Ratio
These ratios reflects the firmโs business operations
1) Net Profit Margin
2) RoE
3) RoCE
RoE (Return on Equity)
A measure of Profitability, Asset Turnover * Total Assets to Net worth
= Net Profit Margin * Total Assets Turnover * Total Assets to Net worth
2. RoNW (Return on Net worth)
=
๐ต๐๐ ๐ท๐๐๐๐๐
๐ต๐๐ ๐๐๐๐๐
Where, Net worth = Equity capital + Reserves & surplus โ accumulated losses (if any)
RoCE (Return on total Capital Employed)
=
๐ต๐๐ ๐ท๐๐๐๐๐
๐ช๐๐๐๐๐๐ ๐ฌ๐๐๐๐๐๐๐
Where, Capital Employed = Net worth + Total Long term borrowings
EVA (Economy Value Added)
It is the economic profit generated after the cost of invested capital.
It is the opportunity cost of invested capital that is not realized by trading accounting
measures.
= Net Operating Profit After Tax โ (Invested Capital * Cost of Capital)
Where,
Invested capital ----- Book value of capital (common and preferred capital)
Cost of Capital ----- Minimum required rate of return for investors
= Net Operating Profit After Tax โ (Capital Invested*WACC)
= Net Operating Profit After Tax โ (Total AssetsโTotal Liabilities)*WACC
Cost of Equity
Minimum required rate of return investing in the stock and ownership
Cost of Debt
Book value of Debt other than bonds, bonds valued at market value
Enterprise value
= Market value of Equity (market cap) + Book value of Debt โ Cash and Cash Equivalents
(Other than Bonds, valued at market value)
3. ฮฑ (Alpha)
Excess return of the stock over the risk adjusted market return, given the level of risk
measured by ฮฒ
Return of the stock when there is no market return
ฮฒ (Beta)
Stockโs volatility with respect to market volatility
=
๐๐๐๐๐๐๐๐๐๐(๐, ๐)
๐ ๐ ๐
Where,
๐ ๐ ๐----- market variance
X----- Stock
m----- Market
Price to Earnings ratio (P/E)
=
๐๐๐๐๐๐๐ ๐๐๐๐๐ ๐๐ ๐๐๐ ๐๐๐๐๐
๐ฌ๐ท๐บ
Earnings per Share (EPS)
=
๐ต๐๐ ๐๐๐๐๐๐
๐ญ๐๐๐๐ ๐ ๐๐๐๐๐๐ ๐ฌ๐๐๐๐๐ ๐๐๐๐๐๐
Industry P/E
=
๐๐๐๐๐๐ ๐๐๐ ๐๐ ๐๐๐ ๐ฐ๐๐ ๐๐๐๐๐ (๐๐๐๐๐๐๐๐๐)
๐ต๐๐ ๐๐๐๐๐๐ ๐๐ ๐๐๐ ๐ฐ๐๐ ๐๐๐๐๐ (๐๐๐๐๐๐๐๐๐)
Market cap
= closing price of the stock *fully diluted shares of the company
Book value
= Original cost โ accumulated Depreciation
4. =
๐ต๐๐๐๐๐๐๐
๐ป๐๐๐๐ ๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐
Total Risk
= Systematic risk (Market risk) + Unsystematic risk (Firm specific risk)
= ๐ท ๐
๐ ๐ ๐ + ๐ ๐
Total Return
= ฮฑ + ๐ ๐ + ฮฒ (๐ ๐ โ ๐ ๐)
Where,
๐ ๐= Risk free rate of return
๐ ๐= market return
Present Value (PV)
=
๐ ๐ฎ๐ญ๐ฎ๐ซ๐ ๐๐๐ฅ๐ฎ๐
(๐+๐ฒ๐) ๐
Where, Ke----- Rate of Interest
Future Value (FV)
= PV*(๐ + ๐ฒ๐) ๐
Where, Ke----- Rate of Interest
Net Present Value (NPV)
= Present Value of cash inflows โ cash outflows
Internal Rate of Return (IRR)
= NPV/cash outflow
5. Benefit Cost Ratio (BCR) or Profitability Index (PI)
=
๐ท๐ฝ ๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐
๐๐๐๐ ๐๐๐๐๐๐๐
Weighted Average cost of Capital (WACC)
=
๐ฌ
๐ฌ+๐ซ
๐ฒ๐ +
๐ซ
๐ฌ+๐ซ
๐ฒ๐ (๐ โ ๐)
Where,
Ke = Cost of Equity
Compensation that the market demands in exchange for owning the asset and bearing the
risk of ownership.
Kd = Cost of Debt
It is the effective rate that a company pays on its current debt.
Cost of Equity can be calculated by two ways
1) Dividend Capitalization model =
๐ซ๐๐๐๐ ๐๐๐ ๐๐๐ ๐๐๐๐๐ (๐๐๐๐ ๐๐๐๐)
๐๐๐๐๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐ ๐๐ ๐๐๐๐๐
+
๐ฎ๐๐๐๐๐ ๐๐๐๐ ๐๐ ๐ ๐๐๐๐ ๐๐๐
2) Capital Asset Pricing Model (CAPM) = ๐ ๐ + ฮฒ (๐ ๐ โ ๐ ๐)
Where, (๐ ๐ โ ๐ ๐) is known as Risk Premium
Cost of Debt is calculated by,
Book value of its Debt
Discount rate is calculated by,
CAPM model = ๐ ๐ + ฮฒ (๐ ๐ โ ๐ ๐)
Sensitivity analysis
How NPV will change in response to a given change in any input variables.
For example,
What if Unit sales fall 15% below?
What if Sales price per Unit falls?
What if variable costs increase?
6. Green Shoe Option
In an underwriting agreement, the Underwriter has the right to sell investors more shares
than originally planned by the issuer. It can provide additional price stability to a security
issued because the underwriter has the ability to increase the supply and smooth out price
fluctuations if demand exists.
Debt syndication
Public Issue of Corporate Bonds, private placement of Bonds and Debentures, ECBs,
FCCBs, ICDs, Loan against securities.
Equity Syndication
Institutional raise of funds, High Net worth Individuals (HNIs), Initial Public Offering
(IPOs), Follow on IPOs (FPOs).
Sweat Equity share
Equity shares issued by the company to Employees or Directors at a discount of for
consideration other than cash for providing know-how or making available rights in the
nature of intellectual property rights of value additions.
Share Certificate
It is a document issued by the company and is evidence that the person named therein is
the holder of the specified number of shares.
Share Warrant
It is a bearer document issued by the company under its common seal stating that the
bearer of the warrant is the holder of shares specified in the document. (U/S 114)
Preference shares
The shares which enjoy the preferential right in the matter of payment of dividend or
repayment of capital. Before Equity share holders, Preferential shareholders are entitled to
get dividend.
Methods of raising Capital by issue of shares
1. By issue of Prospectus
2. By an Offer for Sale or by deemed Prospectus
Any document issued by the Issuing House is treated as a Prospectus issued by the
company. The company allots Shares or Debentures at a predetermined price to a
Financial Institution or an Issue House for sale to the Public. Then the Issuing
House publishes a document called an โOffer for Saleโ attached to the application
form, offering to the public, shares for sale at a higher price.
7. 3. Issue of shares to the existing Shareholders
4. Private Placement of shares
A Private company is prohibited from issuing its shares to the general public and hence
raises capital by issuing shares to the close friends and relatives of the promoters.
A Public company too, can raise its capital from private sources instead of resorting to a
public issue of shares. Raise of funds from private sources is usually done by utilizing the
services of a broker or an underwriter who acts as an agent to procure buyers for the
shares. In such a case, the company is not required to issue a prospectus, but needs to file a
Statement-In-Lieu of Prospectus with the Registrar.
i.e., Public issue/Rights issue/Offer for sale
Conditions for the issue of securities:
The companies issuing securities offered through an offer documents shall have Net
Tangible Assets of at least 3 crores can make IPO.
Others can go by Book Building Process or Project Appraisal methods.
Book Building โ A process undertaken by which a demand for the securities proposed to
be issued by a body corporate is elicited and built up and the price for such securities is
assessed for the determination of the quantum of such securities to be issued by means of a
notice, circular, advertisements, documents or information memorandum or Offer
document.
Generally, for price discovery.
The process which an Underwriter attempts to determine at what price to offer an IPO
based on demand from institutional investors.
An Underwriter โBuilds a bookโ by accepting orders from fund managers indicating the
number of shares they desire and the price they are willing to pay.
Offer Document โ โProspectsโ in case of a Public Issue or Offer for sale. โLetter of Offerโ
in case of Rights Issue.
Green shoe option
8. An option of allocating shares in excess of the shares included in the Public Issue. Its main
purpose is to stabilize post listing price of the newly issued shares.
Minimum subscription = 90%
The amount payable on application on each share should not be less than 5% of the nominal
value of the share.
Participatory Notes
These are the financial instruments issued by the investors of Hedge funds that are not
registered with SEBI, to invest in Indian stock Exchanges.
Indian based brokerages buy Indian securities and then issue P-Notes to foreign investors.
Any dividends or capital gains collected from the underlying securities go back to
investors.
It is similar to informal ADRs process, where brokerages hold on to stocks for foreign
investors.
Indian regulators are not happy because they have no way to know who owns the
underlying securities.
Cross margin
Calculated after considering the combined positions in Futures, Options, Cash markets etc.
The total margin comes down due to cross hedges.
The zone where Loss is minimum optimum
Notional loss = market domain
Actual loss = investor driven
Return on Margin (ROM)
It represents the gain or loss compared to the exchanges perceived risk as reflected in required
margin.
=
๐น๐๐๐๐๐๐๐ ๐๐๐๐๐๐
( ๐ฐ๐๐๐๐๐๐ ๐๐๐๐๐๐)(
๐๐๐๐
๐๐๐๐ ๐ ๐ ๐๐๐๐๐๐๐
) โ ๐
Annualized RoM = (RoM+1)
9. Approaches to appraising the value of a company
1) Adjusted Book Value approach
2) Stock and Debt approach
3) Direct comparison approach
4) Discount Cash Flow approach
Multiples used to value a company
P/E ratio, EBITDA (a proxy for cash flow), EBIT, Book Value
Business risk
Risk arising due to Operations (EBITDA).
Financial risk
Risk arising due to debt finance use.
Liquidity risk
Risk arising due to counter party not obliging his part of due.
Value chain analysis
Activities from the supply of basic raw materials to the end-use product delivered into the
final customerโs hands.
Balance sheet
Presents the financial position of a company at a given point in time. It comprised of
Assets, Liabilities and Shareholderโ Equity.
Assets = Liabilities + Shareholderโs Equity
Income Statement
Shows the resources obtained through its own operations. It comprised of Revenue,
Expenses and Net Profit.
Net Profit = Revenues โ Expenses
Retained Earnings Statement
10. It is the amount of profit a company invests in itself (i.e. profit that is not used to pay back
debt or distributed to shareholders as a dividend)
This statement will be reflected to Balance sheet.
A project is accepted only when BCR โบ 1
A project is accepted only when NPV โบ 0
A project is accepted only when IRR โ Cost of Capital โบ 0
IRR โ NPV = 0
NPV โ Present Value of future cash flows
BCR (Benefit Cost Ratio) or Profitability Index=
๐ท๐ฝ ๐๐ ๐ญ๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐
๐ฐ๐๐๐๐๐๐ ๐ฐ๐๐๐๐๐๐๐๐๐