The article presents a method to compute the value of a flexible capital structure of a company. A company's value will be maximized when it operates at its optimal capital structure. The optimal capital structure is that mix of debt and equity that minimizes the company's cost of capital....
How do you compute ending inventory in a trading industry if only given the beginning inventory, purchases and expenses? How can we find the area of a function f(x)=x^2+x from a to b by Riemann Sums method and relate it to the integral method?
Another method for adjusting returns for cash flows is theinternal rate of return(IRR), a discount rate that makes the net present value of all cash flows zero. Using a financial calculator or spreadsheet software, you can quickly compute the IRR, which gives you an effective means for ...
How where the numbers in LIFO-Ending Inventory determined? How to journalize adjusting entries for an unearned fee? How to find the balance of wages payable from previous year? How do you calculate the beginning retained earnings? Explain how is income taxes payable reported on the balance s...
The result using the NPV function for the example comes to $722,169. Then subtract the initial outlay from the value obtained by the NPV function to compute the final NPV. NPV = $722,169 - $250,000 or $472,169. This computed value matches that obtained using the first method. ...
Learn how to find beginning inventory, get the beginning inventory formula, walk through an example, and more.
For the Accounting Rate of Return, why do we need to add scrap value into initial investment? How do I calculate the market quantity demand for a product? How do you compute ending inventory in a trading industry if only given the beginning inventory, purchases and ...
The ability to access financial capital has a profound impact on firm entry, production and export behavior, all of which often require large upfront costs that cannot be funded internally (Bekaert and Harvey 1995; Bekaert et al. 2011; Henderson et al. 2006). Firms are constrained by the st...
Uses of Capital Employed Computation of Capital Employed Different accountants compute it differently. Capital employed can be computed using either the asset side or the liabilities side of the balance sheet. To get a better understanding, let us see the examples below : ...
Simply put, EV is the sum of a company's market cap and itsnet debt. To compute the EV, total debt—both short- and long-term—is added to a company's market cap, and then cash and cash equivalents are subtracted. Market capitalization is theshare pricemultiplied by the number ofoutst...