What is Blockchain, Why is it so Popular, and Benefits and Challenges of Using it
What is Blockchain and what is a Distributed Ledger? Not a day goes by without a media report on how a particular firm or entity as well as an upcoming governmental initiatives is thinking of using Blockchain technology for security, integrity, and consistency of data. Further, anyone who has heard of Bitcoin would have definitely […]
Bretton Woods Agreement and Smithsonian Agreement
The transition of the world monetary system from gold standard to the modern Forex markets was anything but smooth. Governments from all over the world collaborated to make two pacts which would form the basis of the modern monetary system. However, both the arrangements failed. In this article, we will have a closer look at […]
Early Termination of a Public Private Partnership
Public private partnership is a widely used model when it comes to infrastructure financing. However, it needs to be understood that not all public private partnerships end successfully. In some cases, the partnership ends in a default. This means that either one of the parties’ viz. the private party or the public party are unable […]
Cognitive Dissonance Bias
All investors have pre-existing beliefs about the way investment markets work. These beliefs are often deep-rooted and subconscious. For example, some investors believe that investing in index funds is better than investing in mutual funds. There are still other investors who believe that investing in precious metals or real estate is better than investing in […]
Dividend Discount Model: Share Repurchase Programs
In corporate finance we studied that companies had an option when it came to compensating their equity shareholders. They could both pay these shareholders cash dividends from the earnings of the current year or alternatively they could conduct a share repurchase program and buy back some shares from the same proceeds. The monetary effect would […]
Ratio analysis is one of the oldest methods of financial statements analysis. It was developed by banks and other lenders to help them chose amongst competing companies asking for their credit. Two sets of financial statements can be difficult to compare. The effect of time, of being in different industries and having different styles of conducting business can make it almost impossible to come up with a conclusion as to which company is a better investment. Ratio analysis helps creditors solve these issues. Here is how:
Here is where the investors get the data they require for ratio analysis:
Your email address will not be published. Required fields are marked *
