Calculate Expense for Premium Bonds Calculate the interest expense for bonds issued at a premium to par, meaning the issuing price is more than the par value. This occurs when the prevailing market interest rate is lower than the coupon rate. Debit interest expense by the difference of the int...
To calculate this ratio, find the company’s earnings before interest and taxes (EBIT), then divide by the interest expense of long-term debts. Use pretax earnings because interest is tax-deductible; the full amount of earnings can eventually be used to pay interest. Again, higher numbers ar...
Now that we have a high-level explanation of the two valuation techniques available to REIT investors, the next two sections will provide detailed examples on how to calculate valuation metrics relative to these unique legal entities. Example #1: Realty Income P/FFO Valuation Analysis ...
you need to remove the waste and it’s quite expensive, because you need to store it in concrete cooling units and then in permanent storage. The provision for these expenses is recognized when the waste is produced (i.e. when you operate the plant). ...