About This Chapter
Using Math for Financial Analysis - Chapter Summary
Our chapter on the uses of math for financial analysis contains a series of lessons with accompanying quizzes. Some of the topics covered include calculating the time value of money and finding the value of an annuity. After finishing this chapter, you should be able to do the following:
- Define present and future value and share how it's calculated
- Explain how to calculate the present value of an annuity
- Detail the formula used to calculate the rate of return
- Discuss what motivates mark-up and break-even pricing
- Outline financial ratio calculation and analysis
- Analyze investment performance in stocks and preferred stocks
- Describe the calculations used in corporate earnings and stock values
- Identify bond investment performance
You can work at your own pace and watch as few or as many of the videos as you need in order to reach your goals. Before an exam, take the lesson quizzes and chapter test to assess your knowledge and discover where you need to focus further study. Any questions can be directed to one of our experts via the Dashboard.
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.
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.
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.
4. How to Calculate the Rate of Return: Definition, Formula & Example
In this lesson, we will define the rate of return and explore how it's used in today's business decisions. Using the formula and an example, we'll learn how to calculate the rate of return to determine if a particular business decision is a wise one.
5. 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.
6. 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.
7. 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.
8. 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.
9. Corporate Earnings & Stock Values: Importance & Calculations
Many market experts believe that current and future earnings are the biggest determinant of a company's stock price. This lesson introduces you to the earnings per share and price-to-earnings ratio calculations to illustrate the link between earnings and share price.
10. 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.
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Other chapters within the DSST Business Mathematics: Study Guide & Test Prep course
- Number Sense
- Basics of Linear Equations & Inequalities
- Graphing and Evaluating Equations and Functions
- Solving Quadratic Equations & Functions
- Probability and Statistics for Business
- Depreciation & Salvage Values
- Interest & Purchases
- Business Costs, Taxes & Inventory Valuations
- DSST Informational Resources
- DSST Business Mathematics Flashcards