How do you find the break-even point using a payback period?

June 30, 2024 No Comments

A: It does not make sense to find the breakeven point using a company’s payback period. A company’s payback period is concerned with the number of periods needed to pay back an initial investment with positive net income, while a company’s breakeven point is concerned

How do you get a hard copy of a stock certificate?

June 30, 2024 No Comments

A: Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was the only way to authenticate stock ownership. This is not the case anymore. Although you may not need to hold a stock certificate, you may request one.

How do you transfer common stock from one broker to another?

June 30, 2024 No Comments

A: Common stock shares are most commonly transferred from one broker to another by a system known as the Automated Customer Account Transfer Service (ACATS). Prior to ACATS, a manual transfer system was used. The National Securities Clearing Corporation (NSCC) developed ACATS, which can transfer

How do the income statement and balance sheet differ?

June 30, 2024 No Comments

A: Companies produce a set of financial statements that reflect their business activities and profitability for each accounting period. The three main financial statements are the balance sheet, income statement, and statement of cash flows. The cash flow statement shows how well a company is managing

How do unfunded capital expenditures and distributions affect the fixed charge coverage ratio?

June 30, 2024 No Comments

A: When unfunded capital expenditures and distributions are higher, the resulting fixed charge coverage ratio will be lower. Those figures are subtracted from earnings before interest and taxes, making the earnings before interest and taxes (EBIT) value smaller. Lease payments and interest payments are included

How do you account for changes in the market value of various fixed assets?

June 30, 2024 No Comments

A: A company can account for changes in the market value of its various fixed assets by conducting a revaluation of the fixed assets. Revaluation of a fixed asset is the accounting process of increasing or decreasing the carrying value of a company’s fixed asset

How do you analyze inventory on the balance sheet?

June 30, 2024 No Comments

A: In accounting, inventory represents a company’s raw materials, work in progress and finished products. Financial professionals use a wide variety of quantitative and qualitative techniques to understand inventory in their investing analyses. Quantitative techniques involve performing ratio analysis of the inventory by calculating ratios

How do you calculate a payout ratio using Excel?

June 30, 2024 No Comments

A: The payout ratio measures a company’s ratio of earnings paid out to shareholders as dividends. It is calculated by using a ratio of the dividends a company pays out per share and its earnings per share (EPS). The formula is: (dividends per share) ÷

How do you calculate beta in Excel?

June 30, 2024 No Comments

A: In financial/investment terminology, beta is a measurement of volatility or risk. Expressed as a numeral, it shows how the variance of an asset – anything from an individual security to an entire portfolio – relates to the covariance of that asset and the stock

How do you calculate costs of capital when budgeting new projects?

June 30, 2024 No Comments

A: A new project only makes economic sense if its discounted net present value (NPV) exceeds the expected costs of financing. Before budgeting for a new project, a company must assess the overall level of project risk relative to normal business operations. Higher-risk projects require

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