Professional Finance Homework Help

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Get Through Your Homework with Our Funny Finance Humor

Why Is Doing Your Finance Homework so Hard?

Finance is seen by many as a very dry area to work within with little funny finance humor to be found. However, at times you will want to find funny jokes about finance just to cheer you up while you are trying to get the work done. Many students, however, struggle with their work and will want to find professional finance homework help to support them.

Finance is far more than simply knowing how to do the company accounts. Accounting is looking after the transactions undertaken within the business while finance is more about strategy and planning of how you will look after the assets of the business. This can make for a far more interesting subject area, but also one in which you need to think and work much harder.

Finance requires you to be able to think more deeply about the issues that a company will face and the ways that they can be overcome. When it comes to homework while you have to be able to crunch the numbers you must also be able to communicate clearly and effectively to get your ideas over. Our finance thesis writing jokes and others may make you laugh but often they have a serious point to make to help you with your studies.

Difficulties with Writing Your Finance Homework

The funniest finance homework mistakes may make you laugh if they happen to another, but they are rarely funny if they happen to you. Picking funny finance topics for your research may seem like a good idea but it may not always end with you getting the results that you need. You need to be aware of the mistakes that you can make when doing your assignments so that you can avoid them:

Leaving the work until the last minute: often finance work may require research and extensive work so you need to start the work as soon as you receive it so that you can be sure it is finished on time.

Not understanding what is being asked of you: always carefully review the task to ensure that you are clear what is being asked of you.

Copying: while you can often find answers to almost every assignment online the last thing you should do is simply copy. Plagiarism will see you thrown from your course.

Not checking your work: always check your calculations with care and also proofread and edit your writing.

Check Out Our Funny Finance Humor

Our humorous jokes about finances can help you to keep yourself on track while doing your work. Use these hilarious jokes about finance during a quick break from your work when you are struggling with what to do next. They will help you to relax and get back into the swing of your work.

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Tips for Writing the Best Finance Homework

Whether you are writing an MBA finance project or a piece of high school homework you need to approach your work in the right way if it is to be completed to the right standard and on time. While finance proposal humor may make you laugh you need to ensure that your work is done seriously.

These tips will help you with your writing:

Review the requirements with care: always ensure that you have a full understanding of what is expected of you. If you are not sure then ask.

Plan your work: create an outline for your writing, this will help guide your writing as well as highlighting any issues you may have right at the start.

Do robust research: do not just use your usual search engine. Make use of your books, the library, and scholarly search engines.

Be prepared to rewrite: your first piece of work will rarely be your best. Always take the time to rewrite and edit the assignment.

Proofread: simple mistakes are easy to make so it is vital that you take the time to carefully check your work so that your grades do not suffer.

Why Should You Work with Us on Your Finance Homework?

If you are still struggling to concentrate on your homework after reading our funny finance homework puns then maybe it is time to turn to professional help. We can provide you with top-level support at all stages in your finance education to ensure that your work is done accurately and delivered on time.

With us you get to benefit from:

Qualified staff: our finance experts hold postgraduate degrees as well as fully understanding what your course expects from your work.

Fully detailed calculations and spreadsheets: we detail and annotate everything so that it is clear and easy to follow allowing you to replicate the ideas and methods used.

Worksheet support: we can help you with the development of worksheets to solve your problems and will supply with a full explanation.

Detailed accurate graphs and other visuals: we can supply you with all forms of visuals that you may need to demonstrate your results and ideas.

Delivered on time: no matter how quickly you need your work completing we will always get the work done within your deadline.

Plagiarism and error-free: all work is carefully proofread and will be supplied with a plagiarism report to show it is unique to you.

Full satisfaction with your finance homework or your money will be returned to you.

Share our funny finance humor with your friends and make use of your professional support to ensure that you get the results that you need from your homework.

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New Post has been published on http://www.financehomeworkhelp.org/professional-mba-finance-project-help/

Professional MBA Finance Project Help

Do You Need Help with Your Personal Finance Final Project?

According to the Bureau of Labor Statistics the top 10% of finance managers will earn over $208 thousand per year. This is an excellent salary with the average also being over $121 thousand. But getting that high level salary will mean completing your MBA finance project to a high standard.

You will also want to consider what areas your chose to study for your project so that you can show that you are up to date with what businesses really want. As Investopedia says currently many businesses place a much higher emphasis on understanding financial risks. Of course getting your project finished to that high standard may not always be as simple as you would like.

Even if you are excellent at finance you will still need to find the time to get your final project finance completed. You may even be struggling with the academic English requirements or achieving the correct finance project report format with your writing. Whatever your issues are however our finance project help can support you.

From finance homework help at college through to PhD project finance writing our specialist services can provide you with the high level support that you need. We offer support that you just will not better through our competitors. We will ensure that you get your paper written on time with accurate analysis, proper referencing, and error free so that you get the results you want.

How Can Our MBA Finance Project Help Support You?

Studying at business school means working to a very high standard. This is not something that just any writers can support you with. Your MBA finance project will require writing perfectly in every way and that means that the writer must be qualified in this field to support you. We provide you with a writer that will hold a PhD or a masters degree in finance to ensure that they will fully understand the project that you will write.

They will work closely with you so that they can fully understand what you need. Our finance support is tailored to your needs and can cover everything from selecting the right MBA finance project topics through to editing your final paper. All writing and other services are done without any copying so that you can be sure that your project will be unique to you.

With our highly qualified experts we are able to cover all areas of finance that you may be required to write within such as:

Corporate finance

International finance

Public finance

Personal finance

Our experts are also able to offer their full support in many different ways throughout your education all the way up to your doctorate studies. They will be able to help you with:

Finance formula sheet and other related revision and cheat sheets

Selection of MBA finance project topics

Writing or project proposals

Finance project sample writing

Research paper writing

Dissertation and thesis papers in finance

Editing and proofreading for your papers

Literature research

Defense preparation and coaching

What Are the Best MBA Finance Project Topics

Selecting a good finance project topic is often something that many students struggle with. You need to find something that is both suitable for study at this level as well as it being of interest to you. You also have to ensure that your proposed topic is feasible and something that you can actual complete with your skills and available resources.

Top 50 Finance Project Topics

The following suggested topics will help you to come up with a project that will be right for you.

Guaranteed Support with Your Finance Project

In addition to providing you with some of the best finance tutors that you will find online our services will also provide you with a wide range of other support to ensure that your project will be completed perfectly. Through us you will benefit from all of the following advantages and guarantees:

Highly affordable: we guarantee that there are no hidden charges within our pricing and that you will be paying some of the most affordable rates that you will find online

Guaranteed unique: we pride ourselves in only creating papers that are completely original. Each is supplied with a full plagiarism report.

Guaranteed error free: we provide you with free certified proofreading on all of our services to make sure that you get perfectly written and formatted papers.

Guaranteed confidentiality: no one is going to know that you have used our services and we will not share your work elsewhere.

Guaranteed satisfaction: we will provide unlimited revisions to your paper but if we cannot satisfy you then we will refund your money.

Guaranteed delivered on time: we know the importance of meeting our deadlines and are never late so that you can make your submission date.

Use our professional support to ensure that your MBA finance project is completed to the highest of standards!

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New Post has been published on http://www.financehomeworkhelp.org/mindtap-finance-assignment-help/

MindTap Finance Assignment Help with Any Course

This is considered the future of our education system as we know it. In fact, hundreds of institutions today are turning to this marvelous software to make each and every learning experience enjoyable for students. What are we talking about? The evolutionary MindTap of course! For those who are scratching their heads wondering what it is all about, don’t worry; we’re going to reveal each and every subtle detail about this revolutionary program. And how our MindTap finance assignment help and finance homework solutions can assist you excelling in your course. So let’s get you started!

What Is MindTap and How Does It Work?

MindTap is a platform for students that is cloud-based and has been around for the last six years. It was created for the sole purpose of increasing interactivity between students and instructors by offering amazing digital products as well as services. It also offers a great platform for you to show what you know with impressive study tools as well as devices.

Introduced by Cengage Learning in 2011 during a TED conference, it showcases how new technology revolutionizes the modern world. What’s so unique about MindTap assignment help is that it goes beyond the regular norms of eBooks as well as digital learning supplements by allowing students to customize their learning experience in a more effective manner. In fact, students are able to create their own accounts and log into their web portals where they can navigate to their dashboards and personalize their needs. Once this is done, the software assembles all the relevant course materials pertaining to the student’s profile and avails it to them. This includes all the quizzes, homework solutions, as well as textbooks.

Another added advantage of MindTap is that it promotes a personalized relationship between the instructor and the student because the instructor is able to monitor each and every activity of the student in real-time and intervene in case the student is not comprehending certain aspects of his or her course. In fact, the student is also able to view their current grades as well as their standings when in their class.

What Finance Courses Offered by MindTap?

These are the current finance courses offered by MindTap which are as follows:

Corporate Finance

Corporate finance is an area that covers the financial aspect of sources of funding as well as how corporations develop their capital structure. It also focuses on the decisive actions and steps that managers execute to increase a firm’s value as well as that of the shareholders. Last but not least, it also focuses on the tools that are used to analyze the financial resources of a given company.

Financial Management

This course deals with how effectively and efficiently money (or funds in general) can be handled to achieve a specific goal, desire, or objective of a given company or organization. It normally specializes in the functions of top management.

Finacial Market and Institutions

Here, you get to learn about the different financial markets that are of importance in your curriculum. For starters, a financial market is an environment whereby people trade varying financial assets such as commodities and financial securities at value prices dependent on the current flow of supply and demand.

NOTE: There are also general finance courses offered as well that you can access once you have your own personalized profile in MindTap.

How Can We Assist You with MindTap Finance Assignment Help?

Do you have issues familiarizing yourself with MindTap as well as MindTap finance problems? Well, thanks to our incredible assistance, you can consider those a thing of the past. We will help you with all aspects of finance MindTap in the following ways;

Guide you in using the interface correctly – It can be a nightmare to get started on a new software; especially one that you’re going to be using for the rest of your academic years! That being said, we will assist you in knowing each and every detail of MindTap homework and how it can improve your learning experience!

Assist you to prepare adequately for a quiz or an exam – Thanks to our great study techniques and methods, we will assist you in acing all your quizzes and getting a magnificent score when it comes to MindTap homework help answers finance.

That being said, we not only offer this type of mindtap finance assignment 05 assistance for finance courses in MindTap but multiple courses as well in different genres of Academia. All one needs to do is simply provide us with the login details and we will proceed to assist the student with the given tests or quizzes currently pending. So don’t hesitate to request for our finance homework solutions and you are guaranteed to achieve the perfect score when it comes to finalizing the test as well as to complete the course!

So for further assistance with MindTap finance article review assignment, feel free to contact us and we will immediately discuss all the particulars of what you would like to be handled for you as well as finding the correct solutions!

Hence, get in touch with us today for all your MindTap finance assignment help and we will immediately assist you!

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New Post has been published on http://www.financehomeworkhelp.org/mindtap-finance-assignment-help-with-any-course/

MindTap Finance Assignment Help with Any Course

This is considered the future of our education system as we know it. In fact, hundreds of institutions today are turning to this marvelous software to make each and every learning experience enjoyable for students. What are we talking about? The evolutionary MindTap of course! For those who are scratching their heads wondering what it is all about, don’t worry; we’re going to reveal each and every subtle detail about this revolutionary program. And how our MindTap finance assignment help and finance homework solutions can assist you excelling in your course. So let’s get you started!

What Is MindTap and How Does It Work?

MindTap is a platform for students that is cloud-based and has been around for the last six years. It was created for the sole purpose of increasing interactivity between students and instructors by offering amazing digital products as well as services. It also offers a great platform for you to show what you know with impressive study tools as well as devices.

Introduced by Cengage Learning in 2011 during a TED conference, it showcases how new technology revolutionizes the modern world. What’s so unique about MindTap assignment help is that it goes beyond the regular norms of eBooks as well as digital learning supplements by allowing students to customize their learning experience in a more effective manner. In fact, students are able to create their own accounts and log into their web portals where they can navigate to their dashboards and personalize their needs. Once this is done, the software assembles all the relevant course materials pertaining to the student’s profile and avails it to them. This includes all the quizzes, homework solutions, as well as textbooks.

Another added advantage of MindTap is that it promotes a personalized relationship between the instructor and the student because the instructor is able to monitor each and every activity of the student in real-time and intervene in case the student is not comprehending certain aspects of his or her course. In fact, the student is also able to view their current grades as well as their standings when in their class.

What Finance Courses Offered by MindTap?

These are the current finance courses offered by MindTap which are as follows:

Corporate Finance

Corporate finance is an area that covers the financial aspect of sources of funding as well as how corporations develop their capital structure. It also focuses on the decisive actions and steps that managers execute to increase a firm’s value as well as that of the shareholders. Last but not least, it also focuses on the tools that are used to analyze the financial resources of a given company.

Financial Management

This course deals with how effectively and efficiently money (or funds in general) can be handled to achieve a specific goal, desire, or objective of a given company or organization. It normally specializes in the functions of top management.

Finacial Market and Institutions

Here, you get to learn about the different financial markets that are of importance in your curriculum. For starters, a financial market is an environment whereby people trade varying financial assets such as commodities and financial securities at value prices dependent on the current flow of supply and demand.

NOTE: There are also general finance courses offered as well that you can access once you have your own personalized profile in MindTap.

How Can We Assist You with MindTap Finance Assignment Help?

Do you have issues familiarizing yourself with MindTap as well as MindTap finance problems? Well, thanks to our incredible assistance, you can consider those a thing of the past. We will help you with all aspects of finance MindTap in the following ways;

Guide you in using the interface correctly – It can be a nightmare to get started on a new software; especially one that you’re going to be using for the rest of your academic years! That being said, we will assist you in knowing each and every detail of MindTap homework and how it can improve your learning experience!

Assist you to prepare adequately for a quiz or an exam – Thanks to our great study techniques and methods, we will assist you in acing all your quizzes and getting a magnificent score when it comes to MindTap homework help answers finance.

That being said, we not only offer this type of mindtap finance assignment 05 assistance for finance courses in MindTap but multiple courses as well in different genres of Academia. All one needs to do is simply provide us with the login details and we will proceed to assist the student with the given tests or quizzes currently pending. So don’t hesitate to request for our finance homework solutions and you are guaranteed to achieve the perfect score when it comes to finalizing the test as well as to complete the course!

So for further assistance with MindTap finance article review assignment, feel free to contact us and we will immediately discuss all the particulars of what you would like to be handled for you as well as finding the correct solutions!

Hence, get in touch with us today for all your MindTap finance assignment help and we will immediately assist you!

[maryfhh-blog]

New Post has been published on http://www.financehomeworkhelp.org/mindtap-finance-assignment-help/

MindTap Finance Assignment Help with Any Course

This is considered the future of our education system as we know it. In fact, hundreds of institutions today are turning to this marvelous software to make each and every learning experience enjoyable for students. What are we talking about? The evolutionary MindTap of course! For those who are scratching their heads wondering what it is all about, don’t worry; we’re going to reveal each and every subtle detail about this revolutionary program. And how our MindTap finance assignment help can assist you excelling in your course So let’s get you started!

What Is MindTap and How Does It Work?

MindTap is a platform for students that is cloud-based and has been around for the last six years. It was created for the sole purpose of increasing interactivity between students and instructors by offering amazing digital products as well as services. It also offers a great platform for you to show what you know with impressive study tools as well as devices.

Introduced by Cengage Learning in 2011 during a TED conference, it showcases how new technology revolutionizes the modern world. What’s so unique about MindTap assignment help is that it goes beyond the regular norms of eBooks as well as digital learning supplements by allowing students to customize their learning experience in a more effective manner. In fact, students are able to create their own accounts and log into their web portals where they can navigate to their dashboards and personalize their needs. Once this is done, the software assembles all the relevant course materials pertaining to the student’s profile and avails it to them. This includes all the quizzes, homework solutions, as well as etextbooks.

Another added advantage of MindTap is that it promotes a personalized relationship between the instructor and the student because the instructor is able to monitor each and every activity of the student in real-time and intervene in case the student is not comprehending certain aspects of his or her course. In fact, the student is also able to view their current grades as well as their standings when in their class.

What Finance Courses Offered by MindTap?

These are the current finance courses offered by MindTap which are as follows;

Corporate Finance- Corporate finance is an area that covers the financial aspect in sources of funding as well as how corporations develop their capital structure. It also focuses on the decisive actions and steps that managers execute to increase a firm’s value as well as that of the shareholders. Last but not least, it also focuses on the tools that are used to analyze the financial resources of a given company.

Financial Management-This course deals with how effectively and efficiently money (or funds in general) can be handled to achieve a specific goal, desire, or objective of a given company or organization. It normally specializes with the functions of top management.

Finacial Market and Institutions-Here, you get to learn about the different financial markets that are of importance in your curriculum. For starters, a financial market is an environment whereby people trade varying financial assets such as commodities and financial securities at value prices dependent on the current flow of supply and demand.

NOTE: There are also general finance courses offered as well that you can access once you have your own personalized profile in MindTap.

How Can We Assist You with MindTap Finance Assignment Help?

Do you have issues familiarizing yourself with MindTap as well as MindTap finance problems? Well, thanks to our incredible assistance, you can consider those a thing of the past. We will help you with all aspects of finance MindTap in the following ways;

Guide you in using the interface correctly- It can be a nightmare to get started on a new software; especially one that you’re going to be using for the rest of your academic years! That being said, we will assist you in knowing each and every detail of MindTap homework and how it can improve your learning experience!

Assist you to prepare adequately for a quiz or an exam- Thanks to our great study techniques and methods, we will assist you in acing all your quizzes and getting a magnificent score when it comes to MindTap homework help answers finance.

That being said, we not only offer this type of mindtap finance assignment 05 assistance for finance courses in MindTap, but multiple courses as well in different genres of Academia. All one needs to do is simply provide us with the login details and we will proceed to assisting the student with the given tests or quizzes currently pending. So don’t hesitate to request for our finance homework solutions and you are guaranteed to achieve the perfect score when it comes to finalize the test as well as to complete the course!

So for further assistance with MindTap finance article review assignment, feel free to contact us and we will immediately discuss all the particulars of what you would like to be handled for you as well as finding the correct solutions!

Hence, get in touch with us today for all your MindTap finance assignment help and we will immediately assist you!

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New Post has been published on http://www.financehomeworkhelp.org/how-to-calculate-dividend-decision/

How to Calculate Dividend Decision

Dividend Decision

The dividend is the amount of money paid by the company to its investors. The dividend payments are calculated as dividend per share multiply by a number of outstanding shares.

Assignment:

X Ltd., had 25,000 equity shares of Rs. 100 each outstanding on 1st April, the shares are issued at par in the market, the company removed restraint in the dividend policy, the company ready to pay dividend of Rs. 15 per share for the current calendar year. The capitalization rate is 15%. Using MM approach assuming that no taxes, calculate the price of the shares at the end of the year: (a) When dividend is not declared. (b) When dividend is declared. (c) Find out the number of new shares that the company issues to meet its investment needs of Rs 15,00,000 assuming that net income of Rs. 7,50,000 and assuming that the dividend is paid.

Using the MM approach, the price of the share (P1) at the end of the period will be defined as a following:

Where,

P0 = Prevailing market price of a share

K e = Cost of equity capital

D1 = Dividend at the end of the first period

Calculation price of a share at the end of the period when dividend is not declared

If the dividends are not declared, the company hasn’t any obligation to its investors, and the dividends will be equal zero.

P1 = Rs.100 x (1+0.15)-0 = Rs.115

Price of a share at the end of the period when dividend declaration is avoided is Rs. 115.

Calculation price of a share at the end of the period when dividend is declared

If the dividends are declared of Rs. 15, the price of a share at the end of the period will be calculated as a following:

P1 = Rs.100 x (1+0.15)-15 = Rs.100

Price of a share at the end of the period when dividend declaration is present is Rs. 100.

Finding out the number of new share for new investment of Rs.15,00,000

For finding the required number of share for investment need, the formula will be used:

Where,

M = Number of new shares to be issued

P1 = Price at which new issue is to be made

I = Amount of investment required

X = Net profit earned for period

nD1 = Dividend paid for the period

Step 1

Using the data of requirement #b, the price of share at which new shares will be issued equals R s.100

Step 2

The annual dividend (D) will be calculated using the following formula:

Where

n = Number of outstanding shares at April 1

D1 = Dividend per share

D =25,000 x Rs.15 =Rs.3,75,000

Step 3

If the required investment equals Rs.15,00,000 and net income for the period is Rs.7,50,000, the number of new share for new investment (M) will be computed:

M = (15,00,000-(7,50,000-3,75,000))/100 = 11,25,000/100 = 11,250

The number of new share for the new investment of Rs.15,00,000 equal 11,250 shares.

Don’t be afraid to contact us for help if you don’t know how to calculate dividend, we are ready to help!

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Calculation of Financial Leverage

  The financial leverage (FL) is the relationship between the company’s earnings before interest and taxes or operating profit (OP) and the profit available to shareholders before tax (PBT).

The operating profit (OP) will be calculated using statement of profit as shown below

  Total Per unit Units sold

50,000

  Sales revenue (units sold x price per unit), R s.

5,00,000

10

Less: Variable cost (UC), R s.

3,00,000

6

Less: Fixed cost (FC), R s.

1,00,000

Operating profit (OP), R s.

1,00,000

Less: Interest 8% of 5,00,000 debt, R s.

40,000

Profit available for shareholders (PBT), R s.

60,000

FL = 1,00,000/60,000 = 1.67

Financial leverage equals 1.67

Calculation of Operating Leverage

The operating leverage (OL) is the ability to use fixed expenses and can be computed contribution margin (CM) divided by operating profit (OP)

The contribution margin (CM) will be calculated using statement of profit as shown below

  Total Per unit Units sold

50,000

  Sales revenue (units sold x price per unit), R s.

5,00,000

10

Less: Variable cost (UC), R s.

3,00,000

6

Contribution margin (CM), R s.

2,00,000

4

  OL = 2,00,000/1,00,000 = 2.00

Operational leverage equals 2.00

Calculation of Combined Leverage

The combined leverage (CM) shows the relationship between the company’s sales (CM) and profit before tax (PBT). The combined leverage is calculated using the two formulas:

CM = 1.67 x 2.00 =3.33 or CM = 2,00,000/60,000 =3.33

Combined leverage equals 3.33

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New Post has been published on http://www.financehomeworkhelp.org/how-to-calculate-cost-of-capital/

Find Out How to Calculate Cost of Capital

Weighted average cost of capital (WACC) is a calculation of company’s cost of capital when each category of capital is weighted depending on its proportion.

The WACC is the useful rate for evaluating the expense of attracting future projects.

The formula for calculation WACC will be the following:

Weighted Average Cost of Capital (WACC) = (KD * D) + (KE * E) + (KR * R)

Where,

D = Proportion of debt capital in capital structure                                                                                                   KD = Cost of debt in capital structure after tax                                                                                                           E = Proportion of equity capital in capital structure                                                                                        KE = Cost of equity in capital structure                                                                                                                  R = Proportion of retained earnings in capital structure                                                                                KR = Cost of proportion of retained earnings in capital structure

Step 1 Calculation cost of debt

The cost of debt must be corrected by the amount of tax using the formula:

K d after tax = K d *(1-tax) =12.5 %* (1-0.6) =4%

Step 2 Calculation of cost of equity share using earnings-price ratio

The calculation of cost equity share is as follows:

K e =EPS/MP

Where,

E = Earnings per share                                                                                                                                        MP= Market price per share

  Using the information about the after-tax profit of Rs 6,750 and the number of equity share of 450, the earnings per share (EPS) is presented in the table below.

Profit after-tax, R s. 6,750 Divided by: Number of share 450 Earnings per share (EPS), Rs. 15

  If the market price of the share is Rs. 120, the cost of equity share will be the following:

K e =15/120 = 0.125 or 12.5%

Step 3 Calculation cost of retained earnings

The cost of retained earnings will be similar to the cost of equity share

KR = K e =12.5%

Step 4 Calculation of Weighted Average Cost of Capital

Using the formula above for WACC, the calculation is presented in the table below

Source of Funds Amount, R s. Proportion Cost Weighted Cost (Proportion x Cost) Debt 26,000 33% 4.0% 1.30% Equity Share 45,000 56% 12.5% 7.03% Retaining Earnings 9,000 11% 12.5% 1.41% Totals 80,000 100% WACC 9.74%

  Weighted Average Cost of Capital equals 9.74%

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How to Calculate Required Rate of Return?

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The required rate of return (RRR) is the minimum return an investor is ready to accept on investment, and play a major role in driving securities prices in the financial markets. This is one of many metrics and calculations used in corporate finance and equity valuation. RRR goes beyond just pinpointing the return of investment as it factors in risk as a key consideration in determining potential return. It is a key aspect in dealing with finance problems. This rate is meant to compensate the investor for the riskiness of the investment, and if the expected return on investment doesn’t meet or exceeds the RRR, then the investor won’t invest.

The Capital Asset Pricing Model (CAPM) technique is used in calculating RRR. To do this, three components must be considered; the average market return, the beta, and the rate of return on a risk-free investment. The required rate of return can also be estimated by finding the cost of equity of investments or projects with similar risk. For instance, if a business has several sources of equity—like preferred stock and common stock—then the cost of equity will be weighed on different return rates. Some analysts use a rate calculator to calculate RRR. But, in this post, we will look at each and every metric in details and show you how to determine required rate of return equation and present value annuity formula.

Where:

RRR is the Required Rate of Return

RF is the Risk-Free Rate

β is the Beta

Rm is the Market Return

Calculating the required rate of return appears more complex than they actually are. Below, we provide a formula for required rate of return to help you understand how it works. If you are provided a company’s expected return of $200, 000, a risk coefficient (β) of 1.4, and a risk-free rate of 8%, then you’ll work out the calculation as follows;

Using the formula above, the RF is 8%, β 1.4, and expected return $ 200, 000. Therefore;

How to Find Required Rate of Return for Equity

A stock’s RRR on equity calculates the expected return on how risky the stock is as an investment. The beta value compares the business’s overall market and is used to offer the riskiness of the stock. Normally, the beta value in the market is 1, any value that is greater than this would mean that it is riskier and should, therefore, offer a higher return to reimburse this additional risk.

Use the following steps to determine the required rate of return for equity:

Start by deducting the risk-free rate from the market rate to get percentage market premium. For example, if the overall market offers and 10% return, and you wish to invest 5%, then subtract this value from 10% to get 5%, or 0.05.

Secondly, get a beta value. In most cases, the beta value for a stock can be found on most finance and investment websites. Just look up for this value in websites such as cnbc.com and money.msn.com. For this post, let’s assume the beta is 1.25.

Multiply the resulting figure in step 1 above (0.05) with the beta value to give you the market risk premium. In our example, you will have 0.063.

Finally, to obtain the required rate of return on equity, add the risk-free rate to the market risk premium. From our example, 0.063 + 0.05 = 0.113. Therefore, your stock would need to offer 0.113 or 11.3% return on equity to be worth the risk associated with the stock.

What Problems Do You Encounter When Calculating Required Rate of Return and Why You Need Our Help?

Calculating the required rate of return helps you in financial forecasting. RRR not only indicates the return of investment, but it also shows the risks associated the potential return. So, if you ever wondered what is forecasting in finance, this right here is an example. However, sometimes problems arise when trying to find a suitable proxy beta—betas vary with websites. Another difficulty arises when you are told to calculate the required rate of return using other methods other than the CAPM. And just like we’ve shown you how to calculate RRR using CAPM method and how to calculate the same for equity we can also help you work out assignments that require other approaches such as the Discount Divided Approach. Besides helping you work out finance problems, we also help you with the mastery of confusing formulas such as bond valuation formula and present value annuity formula, among others.

We also offer a helping hand in assignments that require finding required rate of return for corporate finance. If you wish to seek our professional help, we will be glad to help at a low cost. You can post your queries on our ever present 24/7 chat tool, and our professionals in business, economics, and finance will attend to your queries through and through. We also promise our esteemed clients quality and original work which is delivered in real time.

Still confused about how to calculate the required rate of the return? Give our services a call then!

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Corporate Valuation Assignment Help from Top Experts

Many investors shudder at the thought of investing their money in a company that will experience a slip and fall at any instant. So how do they stay on the safe end (the profit end that is) of their investments? Well, a majority of them rely on calculating business valuation. In fact, it’s clear that this process is critical in helping a company secure healthy investment in the future. Therefore, students pursuing business courses need to be well-versed in corporate valuation through frequent exercises and assignments. And to help you understand better, we offer quintessential corporate value assignment help.

But before we get into the details of our services, what is your understanding of business analysis and valuation? Well, in simple terms, it is determining how much a company is worth This is done through a variety of methods; e.g. having a look at standard ratios, methods, and tools that will help us determine whether the stock is overvalued or undervalued. Such information is critical in determining how the company will be affected by market instability, financial stress, or merger acquisition!

Types of Approaches We Handle with Our Corporate Value Assignment Help

In company valuation calculation, there are three types of approaches applied. They are as follows:

The Income Approach-In the income approach, we take a look at the reasons why we have the company running in the first place…of course to make money. There are two primary approaches when it comes to income:

The Capitilazation of Cash flow method- This method is used especially when it is expected that a company will have relatively stable method margins of growth in the future.  It analyses a single revenue stream and assumes that it will have growth at a steady rate.

The Discounted Cash Flow Method- This method is more flexible than the latter, in that it accommodates items that may not remain static in years to come such as variation in margins, debt payments and growth rates.

The Asset Approach- The asset approach of calculating company valuation looks at a business in terms of its assets and liabilities as the building blocks of the businesses value. Because each and every business has assets and liabilities, this is an efficient way to address business value, but we need to have a standard measuring value when doing so. It may sound like a walk in the park, but the challenge comes when trying to figure out the liabilities and assets to be included in the stock valuation, selecting an appropriate bond valuation formula, as well as determining the actual worth of each asset and liability.

The Market Approach- As the name entails, this approach relies on the market itself to determine the worth of a given business. One thing we have to realize is that no business operates in a vacuum. Chances are high that there are other companies providing the exact same products and services. For example, if you were planning to buy a business, the first thing you would do is to have a look at ‘other businesses operating in the same market’ to determine its worth. Same would apply to selling the business.

Valuation Methods in Our Corporate Value Assignment Help

When it comes to corporate valuation and financial planning, four main techniques are used:

Discounted Cash flow analysis- This is the most thorough corporate valuation method used. In fact, there are two ways to which a company utilizes the DCF approach:

The Adjusted Present Value (APW)

Weighted Average Cost of Capital (WACC)

NOTE: Both approaches require the calculation of FCF (cash-free flows) of a given company and the NPV (net present value) of the said FCFs.

Multiples method- Unlike the traditional balance sheet method, this method is especially used in situations where there is little information available for use by the comparable transaction method. In this case, we can value a company using market valuation multiples. Some common multiples used include:

Price/Earnings multiples- Also known as the P/E ratios, this compares a company’s annual income with its market capitalization.

EBITDA multiples- Also known as the enterprise multiple, this ratio takes a look at the company’s debt; not taking into consideration other multiples such as the price-to-earnings ratio.

Market Valuation method- This corporate analysis and valuation method follows the economic rationale of competition. It simply states that in the event that there is a free market, both supply and demand will affect the value of business properties up to a certain balance. This means that the purchasers will not be prepared to part with high amounts for the business, and the vendors themselves will not be willing to receive any that is lower to the value of the commercial entity.

Comparable transaction method- This method is actually used when valuing a company that is being prepared for a merger or acquisition. First of all, the parties will have a look at similar transactions that have taken place initially that are somewhat similar to the one being executed. Hence the name comparable transaction.

Importance of Corporate Valuation

Here are a number of reasons why corporate finance valuation is extremely important:

To attract future investments- By showcasing the corporate valuation of a given company, investors can determine whether the given company in question is a smart investment to make and therefore will pump their capital in its direction

To sell one’s business or company at a good price- Corporate valuation helps sellers determine their company or business’ worth in order to sell it at a profit, or receive a good offer for it.

To determine future operational costs- Determining a company’s value now will enable financial managers to determine how the company might grow and how future operational costs may rise or fall in the future (excluding volatile factors such as market fluctuation

Some Examples from Our Corporate Valuation Assignment Help

Here are a few examples of corporate valuation

Example 1(market valuation method)

Say you own a restaurant and you would like to estimate the economic value. There’s another restaurant nearby that recently sold for $2 million dollars and had about $400,000 in earnings. Calculating the market multiple”

$2million/$400,000=5 times earnings. So if your business makes $300,000 in earnings, then its value would be $1.5 million.

Example 2 (Capitalization of earnings)

Suppose your restaurant has earnings of $200,000 with a cap rate of 10% (the cap rate is calculated by taking into consideration the cost of capital and the risk of the company). Then the value would be

$2,000,000/10%=$2 million

These are just one of the hundreds of examples that we assist students with every day when it comes to corporate valuation. For more help with the assignment, or for firm valuation homework help, you can contact our customer support team and they will be more than happy to help!

So get in touch with us today for the best corporate value assignment help and we will effectively handle your order!

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What Is Forecasting in Finance: Things to Know

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What is forecasting in finance? While many business events are unpredictable, forecasting in finance profoundly assist in decision-making, managing finances, giving your business a competitive edge, and exploiting various market trends. Financial forecasting is a significant part of business planning which utilizes historical data in determining the direction of future business trends based on the projected demands of available goods and services. Financial statements such as cash flow statements, examples of mergers, balance sheets, and income statements are easy to use since they apply information from the previous year. Businesses are guided by the actual financial statements for their forecasts to be realistic.

Stock analysts utilize forecasting to deduce how unemployment or GDP trends will change within the quarter or the year. Businesses utilize forecasting in benchmarking themselves whenever they require a long-term perception of operations. Investors and financial analysts use financial forecasting to know if a company’s occurrences like sales expectations will decrease or increase the share prices of the company. Forecasts should be based on a short period to guarantee accuracy.

Companies use financial forecasts to come up with reasonable budgets. Budgeting and forecasting in finance comes up with plans or estimates for the future—what’s we know as budget planning. While forecasting tends to be inaccurate, budgeting has no space for inaccuracy. In budgeting, businesses usually state how much is spent towards advertising expenses, supplies, and payroll. Budgets are made according to the expected income and how previous money was spent. Once a business comes up with a budget, a forecast is conducted to allow them to determine the business’s capability in the long-term. Where forecasting describes the path a business is actually headed, budgeting determines where a business would want to be in future.

The Difference between Financial Modeling and Financial Forecasting

The significant difference between financial modeling and financial forecasting is that modeling involves estimating or calculating the financial numbers of a company while forecasting encompasses what a company thinks about and requires for the future.

Financial forecasting is a statistical discipline, unlike modeling which is a financial discipline. The former involves using historical inputs that are in terms of millions to come up with a range of guesses or the best guess of a particular outcome while the latter uses a range of estimates to determine the best answer. While financial forecasts utilize historical data in the decision-making process, financial models are mathematical models used by companies in determining the full performance and conducting historical analyses.

Financial modeling requires one to have in-depth knowledge of the risk theories and the time value of money. It involves finding and analyzing the specific variables which cause an increase in money. Financial forecasting needs a financial model to understand the world and know where money is borrowed, allocated, and found. Therefore, an individual should be aware of trends in the capital markets, applications of debt and equity, and the source of money.

Finance Forecasting Models

The ability to predict revenue fluctuations allows a business to determine the budget and overcome cash flow issues accurately. Every business needs to conduct a financial forecast since it allows them to anticipate profits. The bottom-up and top-down analyses are the most common models used in financial forecasting.

Bottom-up analysis: It considers factors like the addressable market, department-specific expenses, and production capacity to determine the most accurate sales projection value. It is based on the service or product used in finding the projected value.

Top-down analysis: Unlike bottom-up analysis, a top-down analysis is based on the market and comes down to individual businesses. To conduct a top-up analysis, you first find the available market size factoring in important trends in sales. Then approximate the market section which will purchase your goods and services. A top-down analysis assists businesses in determining their strengths and weaknesses.

How to Do Forecasting in Finance

Financial forecasts have a higher degree of freedom as compared to budgets since they must not necessarily be utilized as planning documents. Financial analysts and statisticians use financial forecasts in approximating a business’ success in future. Let’s take a look at the steps of financial forecasting.

Identify the key assumptions: Business figures are as important as the assumptions hence the need to explain the source of both. The primary assumptions in financial forecasting are inflation rate, capital expenditure, customer growth, sources of revenue, and capital borrowing and repayment.

Establish a base year: As stated earlier on, financial forecasting uses historic and current data to estimate a business’s fate in future. Some businesses prefer using the current year as the base year while others choose the last full fiscal year’s financial statements. Regardless of the base year choice, adjustments should be made for the available measures like pay raises, changes in benefits, and revenue stream changes.

Evaluate expenditure and revenue growth trends: Businesses should be aware of factors that cause an increase or decrease in expenses and revenue to avoid miscalculations. Assessing costs and income trends enables a business to know whether they are likely to incur losses or profits in future.

Choose a forecasting method: Take a look at the advantages and disadvantages of the two most common forecasting methods, top-down and bottom-up analyses, then select the best one.

Assess the validity and reliability of the data used in making the fundamental assumptions: Just to be sure and avoid the common mistakes people make; it is advisable to go through the data used in making assumptions.

Observe expenditure and revenue levels against the forecast: Before submitting the final forecast value, it is important to assess the cost and income levels, explain the differences, and make the required forecast based on the differences.

Financial forecasts may seem time-consuming, and most students struggle with formulae, financial models such as CAPM model formula, and calculation processes that are involved in this topic. Besides, most lack a grasp of the basic concepts in this area such as forecast ability, uncertainty, variation, forecasting methods finance, and randomness, and therefore, end up making mistakes in assignments that involve financial forecasting. Finance Homework Help understands all these and has assembled a team of experts in the areas of finance, economics, management, and accounts to help you with finance problems just like this one. You can post your finance inquiries on our active chat tool, and you will be attended to instantaneously. If you order an assignment at low cost, be sure to receive it exactly on the agreed time.

Still can’t figure out what is forecasting in finance? Just give us a call!

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How to Use CARM Model Formula

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What is CAPM? Although financial analysts prefer using ratios analysis formula in valuation of assets, the CAPM formula is an essential section in capital budgeting. The Capital Asset Pricing Model (CAPM) describes the link between expected return and systematic risk for assets. It is a vital area in financial analysis; actually, finance became a scientific discipline, fully fledged when William Sharpe invented the CAPM derivation in 1986. Harry Markowitz developed the CAPM model and William Sharpe is among the fine-tuners of the model. Business organizations apply the Capital Asset Pricing Model in calculating costs of capital, generating expected returns for assets given the risk of those assets, and pricing of risky securities. The model explains that the expected return of a portfolio is similar to the risk premium and risk-free security rate. Continue reading for more info provided by our professional profitability index assignment help.

The CAPM formula ascertains that investors are not compensated for taking unsystematic risks but systematic risks since they can diversify the former. Systematic risks cannot be eliminated because changes in the market impact every asset. Individual assets are sensitive to changes leading to a high risk level. Therefore, CAPM introduced a formula of calculating risk. CAPM formula example:

Risk-Free rate: The value of the risk-free rate depends on return rates of Treasury bills since there is nothing like a risk-free stock in financial management. Treasury bills have return rates and values secured by the United States government as they are the yields on government bonds such as U.S. Treasuries. Hence, profit is guaranteed and there is zero risk of losing invested capital.

Market risk premium: It is the return attributed to risk present in the stock market. The market risk premium equals to the risk-free rate subtracted from the stock market’s return rate.

Beta: It is a volatility comparison metric. Beta compares the stock’s risk to the larger market’s volatility. A zero beta value is an indication of a perfectly stable security like cash while a beta value of 1 implies that the volatility of the stock market is equal to that of the security. The risk premium multiplied by stock beta gives the expected risk-related return rate which is the risk of the market performance and individual security.

Differences Between CAPM and APT Models

It is prudent for financial experts, investors, and shareholders to know the stock expected returns before investing. The Arbitrage Pricing Theory and CAPM Pricing Model compares various stocks with regards to the annual yields to allow investors to cautiously choose stocks. The following are the difference between CAPM and APT model:

CAPM is informative in the short term than in the long term while APT is more accurate in the long term than in the short term.

The Arbitrage Pricing Theory is mostly used in pricing all risky assets according to their appropriate risks while the Capital Asset Pricing Model finds the required rate of return for all risky assets on the basis of the security’s beta.

Assumptions of the Capital Asset Pricing Model are restrictive as compared to those of APT. For example, the Arbitrage Pricing Theory permits investors to explain the expected return for a certain asset with a model of their choice while CAPM has a specific model.

The APT assumes a linear relationship between risk factors while the CAPM assumes the presence of a linear relationship between assets implying that the models cannot predict results where there is no linear relationship.

CAPM focuses on assets while APT focuses on risk factors. Therefore, the latter is advantageous in that it does not assess risk using a portfolio.

CAPM Model Advantages and Disadvantages

Advantages

Systematic risk: CAPM is an effective and reliable method of risk calculation as compared to other models like the Dividend Growth Model since it considers the systematic risk level against the entire stock market which gives companies an opportunity of comparing themselves to the market.

Diversified portfolio: It eliminates unsystematic risk as numerous investors have diversified portfolios which is a character trait of systematic risks.

Financial risk and business variability: CAPM is applicable where current businesses differ from financing and business mix during opportunity investigation unlike other required return calculations.

Ease-of-use: The Capital Asset Pricing Model generates the link between systematic risks and require rate of return which has been used for over 40 years. It is used to develop potential outcomes for provision of confidence in the required rate of return.

Disadvantages

Regardless of its many years of use, the CAPM formula has received criticism for a number of reasons.

Determination of project proxy beta: A beta reflective, often a proxy beta is necessary to businesses that use CAPM for investment assessing. On the other hand, it affects the reliability of the outcome due to the difficulty that comes with determining a proxy beta which can correctly assess the project.

Ability to borrow at a risk-free rate: CAPM is developed on many assumptions including one that states that investors can lend and borrow at a rate without any risk. The rate at which the U.S. government borrows or lends at is unattainable for any individual investor.

The market return: It is the sum of dividends and capital gains for the market. When the return on the market is negative, a long-term market return is used to make the returns positive. Additionally, these returns are short term and are unreliable in establishing the future returns on the market.

The risk-free rate: The applicable risk-free rate is one which is yielded on short-term government securities. The risk-free rate fluctuates on a daily basis creating a higher risk than expected.

Finance Homework Help guarantees consistent help with the calculations involving CAPM formula and will help understand what is the fundamental equation of the CAPM model. Our professional services are all-round in providing simple advice and tips regarding the Capital Asset Pricing Model. We help you with your finance assignments not only to ensure that you achieve great scores in your tests, but also ensure that you learn how to format, calculate, and model data on your own through tutorials. Show you the differences between market model vs CAPM and CAPM vs APT, We also provide an in-depth analysis of confusing formulas such as bond valuation and equations such as the profitability index equation.

With our online services, you’ll save hours by mastering the art of using CAPM formula, ratio analysis formula, mine data for actionable insights, and create complex financial models. Just ask us anything regarding CAPM through our ever active 24/7 chat tool on our website, or simply give us a call, and we promise to deliver your assignment on time.

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Ratio Analysis Formula: How to Do the Analysis Correctly

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Now, actually what is the purpose of ratio analysis? Ratios are extremely important tools in financial analysis since they help financial analysts implement plans that improve interest coverage, leverage, reordering, financial structure, liquidity, and profitability. In other words, financial ratios help measure the relative performance of various financial facets that characterize a company’s financial health. Ratio analysis is the process of taking accounting and other financial data from a company’s financial statement and organize them in a way that helps you recognize the strengths and weaknesses of a company. We show you how to do ratio analysis correctly, which ratio analysis formula to use, as well as the weakness of ratio analysis. Continue reading for more useful info by our professional Excel assignment help.

A large number of types of ratio analysis can be formulated to add meaning to accounting and financial data of an organization. But, while the use of these ratios can be useful, it can also lead to an information overload which can be cumbersome for the financial analysts. For this reason, the ratios can be grouped into five distinctive groupings covering the basic financial areas of a company that needs ratio financial analysis. They include; Profitability Ratios, Liquidity Ratios, Leverage Ratios, Valuation Ratios, and Management Efficiency Ratios.

Profitability ratios

A profitability ratio is a measure of profitability, which is a means of measuring a business’s performance. In analyzing a company’s profitability ratios, several financial metrics are used to assess the business’s ability to generate profit compared to its expenses and other relevant costs incurred during a specific period. Every company is most concerned with its profitability and can use profitability ratios to determine the bottom line and its return to the investors. Profitability ratios can be classified into the following categories:

Return on Equity (ROE): ROE measures how much a firm makes for each dollar an investor (owner) puts into it. This is ratio concerns the company’s equity holders the most since it measures their ability to make a profit on their equity investment. This is calculated by taking the amount of net income earned (NI) by the total equity of the shareholder—if you want to get the value in percentage, you can multiply the resulting quotient by 100. The higher the value, the better the company is doing using the investor’s money.

Return on Assets (ROA): ROA measures the amount of profit generated by each dollar of the company’s assets. In other words, this ratio measures how well (or effectively) the company generates its income from its assets. This is calculated by taking the company’s net income and dividing it by the value of the company’s total assets.

Net Profit Margin (NPM): NPM is the ratio of net profits to the company’s revenues. It is the commonly used profitability ratio as it compares the company’s bottom line to the amount of sales. NPM shows how each dollar accumulated by the firm as revenue translates into profit. It is calculated by taking the net profit by the total sales.

Gross Profit Margin (GPM): GPM is sometimes referred to as operating profit margin, and is the amount remaining after paying the cost of the sold goods (COGS). It essentially evaluates how much gross profit is generated from sales. Gross profit is equal to gross profit derived from net sales.

Liquidity ratios

A business’s liquidity is its ability id its ability to meet its short-term financial obligations. Liquidity ratios measure a firm’s ability to pay off its current liabilities as they become due, and its long-term liabilities as they become current. Current liabilities are measured in relation to liquid assets to assess the coverage of immediate debts in cases of emergencies. The ratios discussed under Liquidity management include:

Current Ratio (CR): CR is a liquidity ratio that measures the company’s ability to pay off its short-term liabilities with its current assets. Below is a formula used in calculating CR.

Quick Ratio (QR): QR (also referred to as Acid Test Ratio) is a liquid ratio that measures the firm’s ability to pay its current liabilities when they become due with only quick assets. Quick assets are those company assets that can be cashed in the short term (normally within 90 days). QR is calculated by dividing liquid assets by current liabilities.

Cash Ratio: Cash Ratio is the ratio of a business’s cash, as well as cash equivalent assets to its total liabilities, that can be used to pay its short-term obligations. A higher cash ratio generally means the firm is in a better position.

Working Capital (WC): WC is the amount of current assets in the company minus the current liabilities. It determines whether the organization can meet its current obligations with its current assets; as well as how much deficiency or excess there is.

Leverage ratios

Leverage ratios measure the relative amount of funds supplied by equity and debt holders. Typically, businesses depend on a mixture of the owners’ equity and debt to fund their operations. A leverage ratio measures how much capital comes in the form of loans (debt) as well as assess if the company can meet its financial obligations. There are four types of leverage ratios including;

Equity Ratio: This leverage ratio determines the portion of the total assets provided by the equity. Equity Ratios are calculated by dividing total equity by total assets. Equity Ratio can also be calculated by the formula—1 minus Debt Ratio. The reciprocal of equity ratio is called Equity Multiplier.

Debt Ratio: Debt Ratio measures the portion of the firm’s assets that is financed by the debt. It is calculated by dividing total liabilities by total assets. It can also be computed using the formula—1 minus Equity Rat.

Debt-Equity Ratio: This evaluates the capital structure of the organization. A D/E (Debt/Equity) ratio that is more than 1 implies the business is a leveraged company. If the ratio is less than one, it implies the firm is a conservative one. Debt-Equity Ratio is calculated by dividing total liabilities by total equity.

Valuation ratios

Valuation Ratios put insight into the context of a firm’s share price where they serve as important tools for evaluating investment potential. There is a lot of Valuation Ratios, the following are some of the most important ones;

Price-to-Earnings Ratio: Price-to-Earnings Ratio (P/E) looks at the relationship between the firm’s stock price and its earnings. Essentially, it is used to assess whether a stock is overpriced or underpriced. Investors expect a higher growth rate from businesses that have a higher P/E.

Dividend Yield Ratio: Dividend Yield Ratio measures the percentage of return through dividends against the price paid in for stock. You calculate this by dividing dividend per share by market price per share.

Price-to-Book Value Ratio: Price-to-Book Value Ratio (P/B) is the measures the value the market places on the book value of the company. The value book of a firm is the difference between the balance sheet liabilities and balance sheet assets. It is calculated by dividing current price per share by the book value per share.

Earnings Per Share (EPS) Ratios: EPS ratio shows the rate of earnings per share of common stock. To calculate this ration, just deduct the preferred dividends from the net income and divide the result by the average common shares outstanding.

Management efficiency ratios

Management Efficiency Ratios, sometimes referred to as Asset Management Ratios or Efficiency Ratios, are ratios that measures the efficiency with which the firm manages its assets. There are several efficiency ratios in the long list of financial rations including:

Accounts Payable Turnover (APT): Accounts Payable Turnover represents the number of times a firm can pay its accounts during a given period of time. It is calculated by taking net credit purchases and dividing by average accounts payable.

Inventory Turnover: The inventory turnover represents the number of times the inventory is sold and replaced. A bigger ratio means the firm is doing well in managing its inventories. It’s calculated by dividing the cost of sales by average inventory.

Days Inventory Outstanding (DIO): DIO represents the number of days the inventory sits in the warehouse. The shorter the DIO the better.

Days Sales Outstanding (DSO): Days Sales Outstanding is also known as “Collection Period” or “Receivable Turnover in Days” and it measures the average number of days a business takes to collect a receivable. It is calculated by dividing 360 days by the receivable turnover.

Receivable Turnover: Receivable Turnover measures the efficiency of extending and collecting credit. A higher ratio shows efficient credit and collection process. It is calculated by dividing net credit sales by average accounts receivable.

Total Asset Turnover (TAT): TAT measures the overall efficiency of a company in generating sales using its assets. You can calculate TAT by taking net sales and divide it by average total assets.

As you can see, there are plenty of financial ratios, and each requires a specific formula to calculate. One of the areas where students do mistakes is identifying the information that has meaning for a specific use without becoming lost in inappropriate and unrelated ratios and data. Besides, the subject of ratio analysis is supplied with untested claims about which ratios should be used and what their suitable levels should be.

This has been a problem for many students over the years who have struggled to master the art of working out problems associated ratio analysis. This is where we come in! As the name suggests, Finance Homework Help helps you with finance assignments. Therefore, for this part, we show you how profitability, liquidity, efficiency, solvency, and all other performance aspects of a company can be calculated using ratio analysis.

It takes very little time to place an order at low cost with us, and financial experts will be ready to help you with ratio analysis problems, excel assignment help, limitations of ratio analysis, bond valuation formula, and profit margin problems that you have. We offer special discounts for finance assignment, and we have a live 24/7 chat tool to attend to your queries. You can also give us a call, and we’ll deliver your order on time.

Why don’t you try us and we’ll show you how to use ratio analysis formula correctly?

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What Is the Correct Bond Valuation Formula to Use?

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Bond valuation is a financial procedure for determining the fair price of a specific bond. Bonds are long–term debt securities that are issued by government entities and corporations. Periodic interest payments (called coupons) are given to bondholders until the maturity at which they receive the last coupon payment and the bond’s par value. The hypothetical fair price of a bond is the present value of the stream of cash flows expected.

Bond valuation involves calculation of the present value of a bond’s future accrued interest payments called cash flows, and its value upon maturity called the face value or par value. And since the face value of a bond and the interest values are fixed, investors employ bond valuation to determine the rate of return required for an investment to make a bond worthwhile. In other words, bond valuation is the only technique investors use to determine whether it is wise to invest in a particular bond or not. Continue reading for more info provided by our professional Excel homework help.

Terms Used in Bond Valuation

Before we move further and discuss types of bonds, how to calculate bond valuation, the formula used in bond valuation (bond market valuation, bond valuation theorem) and bond valuation models, it is important to first look at vital terms used in basic bond valuation.

Face/par value: This is the amount of money paid to the bondholders upon maturity. This value normally reflects the amount of money borrowed by the bond issuer.

Call price: The value the issuer has to pay to call a callable bond.

Call date: This represents the date at which a bond can be called

Original maturity: The remaining time before maturity date.

Maturity date: Represents the date which the bond matures.

Coupon rate: Normally fixed, this rate determines the interest payments (the accrued interest). It is the percentage of the bond’s face value.

Coupon payments: These payments represents the periodic interests to the bondholder from the bond issuer.

Yield to call: This is the rate earnable if one buys a callable bond at its market price as long as it was called on the call date.

Yield to maturity: The rate earned if a bond was bought at its current market value and held until its maturity.

Bond premium: This is a bond trading above its face value; this happens when a coupon rate is higher than the prevailing interest rates.

Types of Bonds

Bonds come in numerous different varieties—here we’ll cover the most common types.

Treasury bonds: These are bonds that are issued by the national or federal government. These types of bonds are considered safe (risk-free); however, they yield the lowest compared other bonds.

Municipal bonds: These are bonds offered by the local and state governments as well as other government agencies. They are often referred to as “munis” and come in both high-yield and investment-grade varieties. Municipal bonds are normally tax-free.

Mortgage-backed bonds: These bonds have a par value of $25, 000 compared to others that have $1000 and involve “prepayment risk.” Such bonds do not benefit from the declining interest rates since their value drops as the mortgage payment rises.

Foreign bonds: In these types of bonds, the issuer make fixed interest payments and return the principal in foreign denominated currency. The size of these payments when converted depends on the exchange rates.

High-yield corporate bonds: These bonds are offered by companies with relatively weak balance sheets, and therefore, their prices are more closely tied to the health of company’s balance sheets.

Investment-grade corporate bonds: These are issued by corporations with relatively strong balance sheets. Their yields are higher than agency and treasury bonds—though like most treasury and agency bonds they are fully taxable.

The central idea in bond valuation equation is that the value of a bond is equal to the present value of future or expected cash flows. Bond valuation involves three steps:

Approximating future cash flows: The future cash flows are stated in the every question.

Determining the interest rates to be used in discounting cash flows: Corporate bonds have a rate that is greater than the discounting rate to cater for the risks that come with it. Treasury bonds have an interest rate which is similar to the discounting rate since they are risk-free bonds. As for maturity, it is advisable to use the maturity that matches the individual cash flows.

Calculating the present value by dividing the expected cash flows with interest rates found in step two: Present value is the figure that investors would invest today to generate the future cash flow. It is dependent on the interest rate used in calculating the present value and cash flow timings. After determining the present value of each cash flow, the summation of present values gives us the bond value.

Therefore, Bond Value will be:

Bond Valuation Models

There are bond valuation models of zero coupon bonds, annual, and semi-annual bonds.

Bond valuation models of zero coupon bonds: Zero coupon bonds do not make interest payments but give interest to the bondholder at maturity since it is traded at a deep discount.

Bond valuation models with annual coupons: Annual coupon bonds are traded near the price of its par value on a yearly basis.

Bond valuation models with semi-annual coupons: Semi-annual coupons trade near the bond’s price par value twice a year.

Where:

PVIF= Present Value Interest Factor

INT= the dollar amount of interest the bond pays per year

CIR= Coupon Interest Rate (does not change during the bond’s life)

M= Maturity, Par, Face value of the bond

N= Number of years before the bond matures

PVIFA= Present Value Interest Factor of Annuity. (Used in the present value of an annuity series)

Kd= the required rate of return or bond’s market rate of interest. (Changes over the bond’s life)

Working out the bond value of any type using the formula shown in this post is seriously demanding. You’d have to be extremely keen to ensure that every element is placed where it is supposed to be. Besides, you have to understand the meaning of every element in this formulae for you to be able to equate them properly. Sometimes this process can be time-consuming and exasperating, and this is exactly where our services are worthwhile.

Finance Homework Help takes hours off your finance assignment and ensures that you score the best grades in these kinds of school works. We not only help you work out your assignments but also provide detailed explanations on how we went about the process, on your request of course. We’ve been helping students with loads and loads of finance assignments such as how to calculate dividend yield, how to work out ratios, and provided numerous excel homework help. Simply, we go an extra mile than what a simple value calculator would do—we make sure you understand the process which is vital for your finals. Simply log on to our homepage and submit your order. We’ll deliver your order 100% on time, make free adjustments when you request, and basically be there for you 24/7.

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The Easiest Ways to Calculate Dividend Yield

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Knowing how to find debt to equity ratio and how to find dividend yield is very important in accounting formulas since dividends account for almost a third of total returns on equity in stock markets. Therefore, investors solely focus on earnings provided by payment of dividends. Stock appreciation or what is commonly referred to as dividends are the returns investors receive when they invest money in stock.

Income stocks are the shares most companies pay to investors to offset investors’ interest, and growth stocks are shares which organizations choose to reinvest in the business leaving investors with no dividends. Financial ratios are classified according to the business’ financial feature which they measure. Dividend yield ratio is expressed as a percentage and indicates the shares a company pays out on an annual basis relative to its share price. Investors calculate dividend yield to analyze their investment returns in stocks. They show whether their investment in stock is generating stock appreciation through increases in assets or dividends through cash flows.

Cautious investors should focus on dividend yield since it states the extent to which organizations can manage payouts at the current dividend level. The dividend yield ratio formula is:

Below, we provide a step-by-step procedure for how is dividend yield calculated in three ways.

Calculating Dividend Yield as a Percentage of Free Cash Flow

This payout ratio is conservative since the capital expenditure value varies because some companies invest heavily as compared to others.

Find the Free Cash Flow (FCF) figure by subtracting capital expenditures of the previous financial year from operating cash flow. Capital expenditures are present in the investment activities part of the cash flow statement. Assume the operating cash flow is $100 million and capital expenditures $40 million.

FCF = $100 million – $30 million

= $70 million

Obtain the total dividends value from the financing activities part. Our company’s total dividend value is $60 million.

Divide total dividends with FCF to get the company’s dividend yield.

= $60 million/ $70 million

= 0.86

Calculating the Dividend Yield as a Percentage of Operating Cash Flow

Obtaining the dividend yield as a percentage of cash flow from operations is derived by summing up net income and non-cash charges which are a more accurate and less conservative method of determining a company’s dividend sustainability. Some people refer to non-cash charges such as amortization and depreciation as earnings per share. Here are the steps involved:

Find the annual operating cash flow value from the previous year’s statement of cash flow. For example, our company has $100 million fully diluted outstanding shares and an annual cash flow of $100 million. The cash flow per share value is derived by dividing annual cash flow and outstanding shares.

= $100 million/$100 million

In our case, the cash flow per share is $1 per share.

Obtain the common dividends value of the same year. Our company’s common dividends amount to $0.70

Get the dividend yield.

= $0.70/$1

= 0.7

Calculating Dividend Yield as a Percentage of Earnings

The general dividend yield formula is used in calculating the indicated dividend payout ratio and current dividend payout ratio. The two ratios vary in companies that regularly increase dividends annually while they are similar for companies with a constant dividend level every year.

The process of calculating dividend yield as calculating percents of earnings involves:

Obtain the summation of the company’s earnings per share for the previous four quarters which is not similar to the EPS value found in the Statement of Comprehensive Income. The summed up value is known as the Fully-Diluted Earnings per Share (FDEPS). Let our company’s EPS in the last four quarters be $0.25, $0.20, $0.15, and $0.30 for Q1, Q2, Q3, and Q4 respectively. `The FDEPS will be 0.9

Obtain the sum of common dividends per share of the previous year. Assume our company’s dividend per share was $0.15 for the first quarter. The value of dividends per share for the previous year will be  ) $0.6.

Find the dividend yield.

= $0.6/$0.9

=0.54

What Is a Good Dividend Yield?

According to dividend.com, a good dividend yield ranges from 0 to 0.35. It is usually for companies that require almost all their cash to facilitate business growth. For example, technology companies have a desire to develop and conduct intensive research, hence the need to retain almost all their earnings. A healthy dividend yield ranges from 0.35 to 0.55. Companies that have the ability to offer more than half of their earnings as dividends implies that they are a leader in the industry and well established. High dividends ranging from 0.55 to 0.95 are good for the investors but dangerous for the company. A high dividend yield means that a company has less retained earnings for growth and giving dividends in the future due to their inability to utilize capital expenditure. Unsustainable dividend yields exceed 0.95 which is risky since it implies that a company is distributing dividends and incurring debt. Investors should choose healthy dividend yields over high dividend yields since the former is likely to be long-term as compared to the latter.

As you’ve seen, there is a lot involved in these calculations, and sometimes students tend to make mistakes or mix up formulas when they carry them out. Besides, if you are not familiar with these processes, you tend to take longer than usual to get the assignment done, and sometimes you end up failing. Finance Homework Help is a group of experienced professional finance specialists who know these kinds of things inside out.

We show you how to master accounting formulas, how to get average dividend yield, how to construct finance formula sheet, and how to conduct ratio analysis such as how to find debt-to-equity-ratio. We work out your finance assignments at affordable prices and at the same time guarantee on time delivery, free adjustments, comprehensive explanations, and precise calculations. You can call us for free, post queries on our ever live chat tool, send us an email, and you can even choose your own tutor!

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How to Find Debt to Equity Ratio: Your Handy Guide

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The Debt-to-Equity ratio is a financial leverage ratio that measures a business’s total debt to total equity. The D/E ratio is one of financial equations that shows how much debt a firm is using to finance its assets comparative to the value represented in the stockholders’ equity. A higher D/E ratio indicates that a business has been aggressive in financing its growth with debt, and therefore, there may be a greater possibility for financial distress if the profits do not supersede the borrowed funds. On the other hand, a lower D/E ratio signposts lower risk, since debt holders have less claim on the business’s assets and it’s sometimes better for the company not to go all in trying to figure out how to increase debt to equity ratio. Continue reading for useful info provided by our finance homework help best experts.

What’s the Importance of Calculating D/E Ratio?

As aforementioned, debt-to-equity ratio measures the relationship between the capital contributed by the shareholders and the capital contributed by the creditors. This shows the extent to which the shareholders’ equity can satisfy the firm’s obligations to the creditors in the event of a liquidation. This ratio is particularly important to the investors and lenders who normally go for low D/E for reasons that their interests will be better protected in case of a business decline. In essence, companies with high D/E ratios may not be able to attract additional capital from investors or lenders.

The formula for debt to equity ratio:

So how to calculate the debt to equity ratio? To determine it, simply divide the company’s total liabilities by the shareholders’ equity. Both the shareholders’ equity and the total liabilities can be obtained from a firm’s balance sheet. Each industry has diverse D/E ratio scales, as some tend to use less loans than the others. For example, service-based firms tend to use fewer debts than capital-intensive industries such as manufacturing. In such cases, the capital intensive industry companies tend to have a higher debt ratio that service-based corporations.

Nonetheless, investors and creditors have an equal stake in the company’s assets if the D/E ratio value is 1. If the average debt to equity ratio is lower or higher then 1, then this equilibrium is impacted significantly. Unlike equity financing, debt financing tends to be more expensive since debt financing require the company to pay interests regularly. Therefore, companies that leverage massive amounts of debts may not be able to service their obligations. In this case, a lower debt-to-equity ratio typically implies a more financially stable business.

Examples

Assume company A’s shareholders have invested $1.2 million, has a $500, 000 mortgage on its properties, and its total bank lines of credit is $100, 000. What is the debt-to-equity ratio of this business?

Solution:

To get D/E ratio just add $100, 000 to $ 500, 000 to get $ 600, 000 and then divide the resulting figure by $ 1, 200, 000.

Calculate the debt-to-equity ratio of company B whose financial data are recorded in the table below.

Company B

Common Equity $600, 000 Preferred Equity $350, 000 Retained Earnings $3, 150, 000 Additional Paid in Capital $5, 900, 000 Total Shareholders’ Equity $10, 000, 000 Long-Term Debt $10, 000, 000 Short-Term Debt $5, 000, 000 Total Debt $15, 000, 000

Solution:

Using the D/E ratio formula given above, we can calculate that company B’s debt-to-equity ratio is:

Now, is a higher debt to equity ratio better? Based on the two examples, it is correct to say that company A is more financially stable than company B since it has a lower debt-to-equity ratio value implying less risk. Company B has a D/E ratio value of more than 1.00 meaning that debt finances most of its assets than those funded by the shareholders’ money. Such a high D/E ratio is unfavorable because it means the business relies more on external funds, which can be risky especially in cases where the interest rates are high.

Common Mistakes in Debt-to-Equity Ratio Calculations

Now that you know how to find debt to equity ratio, let’s take a look at some of the most common mistakes people tend to make while doing calculations:

People tend to confuse debt-to-equity calculations with debt ratio. While both are leverage ratios and are used to measure a company’s risk in relation to its debts and equity, the two are calculated differently and measure two distinct aspects of business.

Debt Ratio measures the portion of the firm’s assets that is financed by the debt. It is calculated by dividing total liabilities by total assets. Its formula is:

But, as we’ve already seen, debt-to-equity ratio compares a company’s total liabilities to its total shareholders’ equity and its formula is:

Students and professional accountants also tend to mix up liabilities and equities when doing D/E ratio calculations. To avoid such kind of mistakes, it is important to group all liabilities and stakeholders’ equities in separate columns and add up the values in each column and compute for D/E ratio.

While how to compute D/E ratio is pretty straightforward, most students tend to fail because of the two mentioned mistakes. Our service is an established organization that has been helping people with such kinds of assignments for several years now. We start from where you are now and make sure that you not only achieve high graded in your finance homework assignments but also ensure that you understand how everything is done. This way, we ensure that you do the assignments well, and perform even better in your final examinations.

With us you have the liberty to choose your way by ordering whatever service fits you right—whether you are submitting an assignment, choosing your own tutor, setting your own deadline, order detailed calculations and worksheets on how to calculate required rate of return or any other financial problems. It’s totally about you! On our easy-to-navigate website provides you with all the help you need; from a toll free call to a 24/7 chat tool—submitting your query has never been easier.

No need to sweat over trying to figure out how to find debt to equity ratio, just ask for our professional help!

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What Do Profitability Ratios Measure?

Why Do You Need to Understand What Is Profitability Ratios?

Most businesses operate for one reason and that is to simply make a profit, how well they make that profit is gauged through financial metrics known as profitability ratios. Understanding what do profitability ratios measure is vital if you are going to assess a company’s performance. If you still think “why should I do my homework on this topic?”, let’s find out the answer here.

There are several types of profitability ratios that are calculated for a company and they can help you to make comparisons between a company and its competitors or against past performance. They are the measures that provide an insight into the survivability of the business and the benefits that it can generate for its shareholders. The following sections will run through each of the different types of profitability ratios as well as provide you with the formulas that are used to perform the calculations.

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Profit Margin Analysis

There are four measures of profit margin that are reported on your income statement. These are Gross profit, your operating profit, pretax profit and finally net profit. These are usually reviewed over a 3-5 year period as well as being compared to industry benchmarks and competitors.

Gross profit margin

This is often thought of as the cost of sales or the cost of goods sold. This metric reflects the expenses that are labor, raw material and overhead related and are most important within manufacturing style companies. The higher the percentage the better as this indicates that your materials, labor and fixed assets related to manufacturing are being utilized well to generate your profit.

Often a company may have limited control over some of these costs such as raw materials. Prices could be increased with little warning without the company having any possibility of affecting the increases being made. Especially is costs are down to political issues such as Brexit affecting currency exchange rates.

The formula for generating your gross profit margin is:

Gross profit margin ratio = Gross profit / Net sales (Revenue)

Operating profit margin

We subtract the operating (SG&A – Selling, General and Administrative) expenses form the gross profit to arrive at our operating income. This is a much better reflection of how the management of the company is performing and movements in this metric can indicate actions taken by the company management. This is often the preferred profit margin to be used.

The operating profit margin is calculated using the following:

Operating Profit Margin ratio = Operating profit / Net Sales (Revenue)

Pretax profit margin

This ratio can be manipulated as most companies will have access to a variety of different techniques to manage their taxes. This is calculated through:

Pretax Profit Margin Ratio = Pretax profit / Net Sales (Revenue)

Net profit margin

Often simply referred to as the bottom line or the company’s profit margin as it is the final measure of the company’s profitability. This ratio is gained through the following calculation:

Net Profit Margin Ratio = Net Income / Net Sales (Revenue)

Effective tax rate ratio

By comparing a company’s income tax expenses to its pretax income we gain a ratio that reflects the company’s tax rate. This provides us with a good indication of the level of taxation that the company is facing.

While this is a good and important ratio to monitor it does tend to reflect more on the company’s accountant’s ability to implement tax management techniques than the actual management of the company. Fluctuations in this ratio year on year tend to be more of an indication of accounting practices changing.

This ratio is calculated by the following:

Effective Tax Rate Ratio = Income Tax Expenses / Pretax Income

Return on assets ratio

This important ratio will help you to understand just how profitable the company is in comparison to the assets that it holds. Return on Assets (ROA) compares net income with the average assets held by the company and will reflect how well the management of the company is using those assets to generate a profit.

Different styles of businesses will have very different ratios depending on how capital intensive they are. For instance, technology companies are going to have a very different ratio to a company that employs heavy industry. Microsoft, for instance, has a ROA ratio of 18% while General Electric operates at around 2.3%.

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Comparisons between companies even in similar industries should always be treated with care when considering this ratio. Investment professionals would generally expect this measure to be no less than 5%.

This ROA ratio is calculated with the following formula:

Return on Assets Ratio = Net Income / Average Total Assets

Return on equity ratio

A simple definition for this ratio is how well the company is utilizing the investment that the shareholders have made in the company to generate a profit. The higher a number that this number returns the more effective the company is in generating a return for its investors.

Return on Equity (ROE) is a preferred measure used by investors to measure a company’s attractiveness for investment. Ratios of 15 to 20% are often considered as being a good indication of a company worth investing in.

It does however have a weakness in that when looking at the calculation result high levels of debt can cause the figure to rise causing a less savvy investor to get the wrong ideas regarding the company’s profitability.

The ROE is calculated through the following calculation:

Return on Equity Ratio = Net Income / Average Shareholders’ Equity

Return on capital employed ratio

ROCE – Return on Capital Employed adds the company’s debt liabilities or funded debt onto the equity to get a reflection on the total capital employed by the company. This gives you a much better understanding of the ability of the company to create returns from the whole capital base.

This is far better than measure than using ROE on its own and provides analysts with a far more comprehensive indication of the company’s profitability and the management’s ability to use the total capital to generate an income.

A company’s ROCE ratio should be at or above the average borrowing rate for the company as a general rule of thumb. Do not, however, confuse this measure with Return on Common Equity and check how a company has calculated their assets and debts as there are variations.

The calculation for this ratio is:

Return on Capital Employed Ration = EBIT / Capital Employed

Where EBIT is Earnings Before Interest and Taxes, and Capital Employed is Average Debt liabilities added to average shareholder Equity.

Avoiding Issues with Your Assignment on Profitability Ratios

Getting the best grades for all of your assignments is very important if you want to pass your course with the required results to continue your studies. This means taking great care and investing the required time and energy into understanding the different types of profitability ratios that you will need to understand and calculate.

Getting your assignments completed to the required standards, however, is not always easy. They following advice will help you to avoid some of the issues that you may encounter when working with profitability ratio formulas:

Understanding what is actually being asked of you; make sure that you pay full attention during all classes and do all of the reading that is expected. Most assignments are designed to build on what you have been doing in class; if you don’t fully understand then ask your tutor.

Selecting the right equations to use; don’t rely solely on what you see online, better to select what you have been shown in the class or within your textbook as there are some variations within some calculations.

Getting the calculations correct; while the ratios themselves are fairly straightforward, the supporting information that is required can be hard to put together. Take great care to review your spreadsheets to ensure that they are correct.

Submitting poorly written work; just because finance expects you to work with numbers does not mean that you can slack off on your writing. Simple and avoidable mistakes will see your grades significantly reduced as you still have to work on your communication skills.

We Can Help with Your Profitability Ratios Homework

Finance is not an easy subject to complete your assignments in and this is why many students at all levels within their education will turn to our services for help. Through our specialized services you will get to work with a finance expert that holds a post graduate degree as well as many years of tutoring experience at your level. They work with you to provide support that will ensure that you can submit work of a high standard worthy of the best grades.

The help that we provide is always proofread to a high standard and all calculations are tested and explained in full detail to ensure your understanding. We offer you a full satisfaction money back guarantee and our highly affordable support will always deliver on time so that your homework never misses its deadline.

If you are struggling with what do profitability ratios measure just contact our reliable and dedicated specialists here today for support that you can trust.