A shutdown point is a level of operation in which the company no longer benefits from continuing its operations and hence decides to shut down temporarily or permanently. The company no longer benefits from continuing production in the short run…
What is Net Book Value? Net Book Value, also known as the net asset value, is the value at which the company reports its assets on their balance sheet. It is calculated by netting against its accumulated depreciation. This is…
A corporate guarantee is a legally binding commitment made by a company on behalf of another party, usually a subsidiary or affiliate company, to assume responsibility for the debt or other financial obligations of that party. You are free to…
Harmonic mean formula: For n positive numbers \(x_1,…,x_n\), the harmonic mean is HM = n ÷ (1/x1 + 1/x2 + … + 1/xn). Use HM to average rates (speed, P/E ratios) where denominators matter. In statistics, data science or just…
What is Annual Return Formula? The annual return formula is the capital gain on an investment generated over 1 year and it is calculated as a percentage of the initial amount of investment. If the return is positive, it is…
Interim dividend meaning is simply dividend payments which company pays either quarterly or semi-annually before the annual general meeting of the company or the annual results. Interim Dividend Meaning Summary Colgate announced that they would be thinking about giving interim…
You must have heard in the news that recently BPCL announced an Rs58/ dividend per share on September 2021. So, whenever you invest in the shares of a company you become the owner of the company. A dividend is given…
nav calculation The term Net Asset Value (NAV) is a widely quoted term when it comes to investments. Manu of you might have heard about NAV in the context of mutual funds, ETFs, etc. It is used to determine the…
XIRR Vs CAGR a comprehensive guide In this article I will share some practical examples to explain what is XIRR vs CAGR. The decision to invest is very critical. Albert Einstein once said that compounding is the eighth wonder of…
An initial public offering (IPO) is a process of offering shares of a private company/corporation to the retail investors (public) and institutional investors before going public i.e., listing on the stock exchange where the shares will be traded. An IPO…
Introduction The one thing that attracts interest among researchers is the separation between management and ownership. As the board of directors is the key element of corporate governance, it is clear that its composition must be responsive to the basic…
