Archive for November, 2017

How to Calculate Dividend Decision

What Is 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...

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). Assignment: Arvind Ltd. is having the following informations. Calculate financial leverage opening leverage and combined leverage. Sales...

Find Out How to Calculate Cost of Capital

Assignment: Kumar Industries Ltd. has assets of Rs. 80000 which have been financed with Rs. 26,000 of debt and Rs. 45,000 of equity and a general reserve of Rs. 9,000 The firm’s total profit after interest and taxes for the year ended 31st March 2,000...