Remember that interest on bonds payable is a tax-deductible expense while dividends on preferred shares are not. Finally, for stock options and warrants, we must only consider options that are “in-the-money.” They refer to options in which the exercise price is lower than the average market...
Book value per share is a measure of the net worth of a company and represents the value of each share if the company were to be liquidated and all assets were sold and liabilities paid off. It provides a snapshot of the company’s financial position at a specific point in time and he...
It's important to know how to compute your returns so you understand how your investment capital is being spent but you can use a variety of online calculators to do the work for you. These are just a few of the sites you can visit to calculate the percentage gain or loss for the sto...
Learn how to get a cash advance on your Capital One credit card for your financial needs. Unlock the potential of your card with this helpful guide.
Instead of using a spreadsheet or pen and paper, we would always advise business owners to compute average inventory using a dependable inventory management program. The calculation of average inventory can be made extremely simple, automatic, and less prone to errors with the use of inventory mana...
Step 2: Compute or locate the beta of each company Step 3: Calculate the ERP (Equity Risk Premium) ERP = E(Rm) – Rf Where: E(Rm) = Expected market return Rf= Risk-free rate of return Step 4: Use the CAPM formula to calculate the cost of equity. ...
In investing, what is weighted average? How do you calculate retained earnings from trial balance? a. Compute the working capital b. Compute the current ratio How to calculate fixed asset turnover Kose, Inc., has a target debt-equity ratio of 1.45. Its WACC is 9...
Capital Employed = Share Capital + Reserves and Surplus + Long-Term Borrowings = 400000+100000+150000 = 650000 As we have read above, in the absence of a universally accepted definition, we can also use a few other approaches to compute it, e.g., ...
To compute the taxable income, you must add the predicted adjusted gross income, regular income subject to tax, annual credits, and deductions taken through tax returns. To determine your deductions, look at your estimated taxes from last year. Although it may seem easy, many people delay submi...
(EPS) using the average shares outstanding, which are also listed on the income statement. EPS is calculated by dividing the net income figure by the number of weighted average shares outstanding. With 7.433 billion outstanding shares for Microsoft, its basic EPS came to $11.86 per share ($...