About This Chapter
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.
|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.|
1. Present and Future Value: Calculating the Time Value of Money
The time value of money is a critical concept in accounting and financial management. Explore how to calculate both the present and future values of money and annuities.
2. How to Find the Value of an Annuity
An annuity is a type of savings account that pays back the investor in the future. Learn the formula used to calculate an annuity's value, and understand the importance of labeling specific numbers to calculate an output over time.
3. How to Calculate the Present Value of an Annuity
An annuity is an interest-bearing account that either pays out or requires a fixed payment each month, and its present value is its current-day value. Learn more about how to calculate the present value of an annuity by studying its formula and an example.
4. Pricing Cost: What Motivates Mark-up and Break-Even Pricing
Learn about pricing cost and what motivates mark-up and break-even pricing. Explore pricing, which is one of the marketing mix 4Ps, basic pricing terminology, and pricing options, including their purpose, advantages, and disadvantages.
5. Financial Ratio Calculation and Analysis
Financial ratios are ratios of important numbers from financial records, and they are important to keep track of in finance and business. Learn more about defining financial ratios, identifying the importance of them, and calculating the profit margin or debt ratio.
6. Stocks: Understanding Investment Performance
Stocks are an investment into the shares or ownership of a company and repay the shareholder dividends throughout the year. Learn more about stocks, investment performance, dividends, the role of the stock exchange, and how to calculate earnings.
7. Preferred Stock: Understanding Investment Performance
Preferred stock is when an investor owns shares or a percentage of a company with no voting rights and no say in the venture's decision-making processes. Learn more about the definition of preferred stock and the differences in investment performance between regular stocks and dividends.
8. Bonds: Understanding Investment Performance
Bonds are loans that are paid off in the future and accumulate interest. Gain an understanding of investment performance and explore interest, yield, interest payment calculations, and how much bonds are worth.
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