Following are the most common methods used for equity valuation: Method # 1. Based on Balance Sheet: i. Book Value: It is the net worth of a company divided by number of outstanding shares. Net worth is equal to paid-up equity capital plus reserves and surplus minus losses. ii. Liquidation Value: Liquidation value is different than a book valuation. [...]
This is the most widely used measure of return on bonds. It may be defined as the compounded rate of return an investor is expected to receive from a bond purchased at the current market price and held to maturity. It is really the internal rate of return earned from holding a bond till maturity. YTM depends upon the cash [...]
In this article we will discuss about:- 1. Introduction to the Dividend Policy of a Company 2. External Factors Affecting Dividend 3. Internal Factors 4. Dividend Decision and Tax Consideration 5. Approaches 6. Homemade Dividend 7. Establishing a Dividend Policy. Contents: Introduction to the Dividend Policy of a Company External Factors Affecting Dividend Internal Factors Affecting Dividend Dividend Decision and [...]