Ch 8: Math for Financial Analysis

About This Chapter

Watch video lessons and learn how math is used to calculate the value of annuities or evaluate the performance of investments. The quizzes that follow each of the lessons can help you gauge your comprehension of the materials.

About This Chapter

This Math for Financial Analysis chapter covers the mathematical calculations associated with stocks, bonds, annuities and common financial ratios. The video lessons are also designed to teach you about contribution margins, average collection periods and asset turnover. Once you have watched the lessons, you could understand how to:

  • Compute net sales
  • Calculate the starting and ending prices of stocks
  • Calculate the current bond yield.

Video Objective
Present and Future Value: Calculating the Time Value of Money Learn the processes for computing present and future values.
How to Find the Value of an Annuity Discover the steps involved for calculating how much an annuity is worth.
How to Calculate the Present Value of an Annuity Use interest and time to make annuity computations.
Break-Even Analysis: Price and Cost Calculations Learn about variable and total cost, and discover the processes for calculating quantity. Find out how to calculate fixed costs.
Financial Ratio Calculation and Analysis Discuss debt coverage and current ratio.
Stocks: Understanding Investment Performance Understand and calculate stock EPS and stock yield by showing the paid dividends.
Preferred Stock: Understanding Investment Performance Learn about preferred and cumulative preferred stocks. Differentiate between common stock dividends and preferred dividends.
Bonds: Understanding Investment Performance Learn about the types and terms of bonds, including those with deep discount prices.

8 Lessons in Chapter 8: Math for Financial Analysis
Test your knowledge with a 30-question chapter practice test
Present and Future Value: Calculating the Time Value of Money

1. Present and Future Value: Calculating the Time Value of Money

A central concept in business and finance is the time value of money. We will use easy to follow examples and calculate the present and future value of both sums of money and annuities.

How to Find the Value of an Annuity

2. How to Find the Value of an Annuity

Want to see how much money you will have in the future if you make a set payment every month towards your annuity? Then watch this video lesson for the formula and how to use it.

How to Calculate the Present Value of an Annuity

3. How to Calculate the Present Value of an Annuity

After watching this video lesson, you should know how to calculate how much an annuity is worth at any given time. Learn how to use the formula to calculate the current worth of an annuity that you may have.

Pricing Cost: What Motivates Mark-up and Break-Even Pricing

4. Pricing Cost: What Motivates Mark-up and Break-Even Pricing

The marketing mix consists of the four Ps (product, place, promotion and price). The marketing manager has to decide what type of pricing strategy to use for the overall marketing plan. The options depend on how cost is determined.

Financial Ratio Calculation and Analysis

5. Financial Ratio Calculation and Analysis

After watching this video lesson, you will understand how financial ratios are calculated. You will also understand where they come from and how to read them.

Stocks: Understanding Investment Performance

6. Stocks: Understanding Investment Performance

Many large companies around the world are owned by the public in the form of stocks. Watch this video lesson to learn how stockholders earn money when the company does well.

Preferred Stock: Understanding Investment Performance

7. Preferred Stock: Understanding Investment Performance

After watching this video lesson, you will understand the differences between preferred stocks and regular stocks. You'll also learn how to calculate your dividends and earnings on your stocks when you sell them.

Bonds: Understanding Investment Performance

8. Bonds: Understanding Investment Performance

In this video lesson, you will learn how to calculate the worth of a bond over time. Learn how interest payments are calculated. See just how much money can be earned from keeping a bond over time.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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