Cash Flow: The Direct Method – Arden Group, Inc.
Cash is the life blood of a business; having cash, a firm has more buying power, without necessarily having to borrow money. When a firm does borrow money, cash provides some protection against loan defaults. Having cash on-hand is important, “but cash flow indicates an ongoing ability to generate and use cash” (Kokemuller, 2018). One of the key measures of cash is the statement of cash flow, which has become a key financial statement that…
spending, and also helps the firm set and measure goals. Both of these tools are useful for long term planning. A business is often measured by profits, and your budget is the same way.
Since the ultimate goal of personal finance is to make yourself cash positive each month, it is important to get rid of as much frivolous debt as possible. Any of your income that is financed by debt is temporary, and any of your income used to service debt payments…
The player that I think has the most team-friendly contract is Edwin Encarnacion. This last off-season he left the Blue Jays to sign with the Indians for a 3 year 60-million-dollar contract. While it is a big contract one thing that makes this unique and beneficial to the team is the Indians have a 4th year option to keep him if they wanted to and having that kind of long term flexibility is an advantage every team can use. His last 5 season with Toronto make him worth his contract. Each year he…
Financial statements are indispensable analytical tools for any business regardless of size. There are four primary statements (balance sheet, cash flow statement, retained earnings, and income statement) that are reviewed and analyzed on a regular basis that display an organization economic wealth and health.
• Balance Sheet – will permit the viewer to determine the net worth of an organization via seeing:
o Total assets, debt, and owner/stockholder’s equity
• Income Statement – one will…
Why is it important for you to develop and maintain a spending plan? As appointed to be your financial advisor I feel I’m obligated to address the questions I know you must have, starting off with the most obvious ones first, why is it important to develop a spending plan? A spending plan is an important part of financial planning because it helps you take control of your spending, and, therefore, control your financial future. The first step to creating a spending plan is to determine how much…
QUESTION 1: VALUATION OF SHARES
Dividends Paid = DPS/EPS
Share price for Ragan is $27.36
Growth for 5years = 18.75%
Growth after 5 years = 15%
D(1)=1.08 X 1.1875=1.2825
D(2)=1.2825 X 1.1875=1.52296
D(3)=1.52296 X 1.1875=1.8085
D(4)=1.8085 X 1.1875=2.1476
D(5)=2.1476 X 1.1875=2.5503
D(6)=2.5503 X 1.15=2.9328
Terminal Value = 2.9328/0.15 X 0.20 = $41.4
Share Price = D1/(1+r) + D2(1+r)^2 +D3(1+r)^3 +…
The newsvendor problem is a mathematical model which is used to determine the optimal stock under uncertainty. In the following, the newsvendor context under cost minimization will be introduced.
Let h be the unit holding cost respectively the unit overage cost (as we regard the pure cost context) and b the unit penalty of not serving demand (or unit backorder cost) respectively the unit underage cost. Then, the target inventory B is equal to the mean demand µ plus safety stock SS. The safety…
The Demokratic college student population (the vocal minority) is still an ongoing disgraceful tirade against the outcome of the Presidential election.
It a blemish on the international face of America... enough already... we can only take so much of little soft faces with teary eyes shrieking social injustice obscenities,attacking people and destroying personal property... demonstrating against things that may never come to pass.
It is time for them to sashay back to their safe…
strongest reputation especially with respect to search and advertising. It has one the most recognizable global brands which has given it a market leadership position in that category. The company is financially strong with marketable securities and cash and cash equivalents totaling more than $48 billion in 2012.
The firm’s revenue growth is solid with year-over-year growth of 32.7% in 2012. It is the dominant market leader in the search market with 66.7% share. The company’s product portfolio…
Famous Stock Analyst Marc Chaikin created Chaikin Money Flow which measures the amount of Money Flow Volume over a specific period. The Chaikin Money Flow oscillator is calculated from the daily readings of the Accumulation/Distribution Line.
Chaikin believed that buying and selling pressures could be determined by where a period closes in relation to its high/low range. If the period closes in the upper half of the range, then buying pressure is higher and if the period closes in the lower…