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ROIC Return On Invested Capital
 
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How to calculate ROIC (Return On Invested Capital)? We will start off with explaining how ROA (Return On Assets) relates to ROIC, go through the definition of ROIC, and analyze the ROIC calculations of 3 well-known companies. You learn most by applying concepts to real-life situations, so please watch the entire video to get the full picture! ROIC (Return On Invested Capital) is very closely related to the easier to understand metric ROA (Return On Assets), so it makes sense to quickly walk through the definition of ROA first. Return On Assets is simply Net Income divided by Total Assets. To find the Net Income of a company, you take its income statement or profit and loss statement, and go to the very bottom: the line called Net Income, also known as “the bottom line”. This is the numerator in the equation. Then for the denominator, you turn to the balance sheet, and take the number of Total Assets at the bottom on the left. As a balance sheet needs to balance between what a company owns (on the left) and what a company owes (on the right), you could also take the sum of all liabilities and equity, as this is the same number. So Return On Assets is very easy to calculate. If you want to improve the ROA of your company, you either work on initiatives to generate more Net Income, and/or initiatives to lower the Assets base. This is covered in a related video on Return On Assets that I will link to: https://www.youtube.com/watch?v=W5CrcMSBARU What is the definition of ROIC and how does it differ from ROA? Let me walk you through the semi-official definition of ROIC. The reason why I call this semi-official will become clear to you when we go through the examples of real-life companies disclosing their ROIC calculation later in this video. In the numerator of the ROIC calculation are the returns generated for debt & equity holders, in the denominator is Debt plus Equity. More specifically, the returns generated for debt & equity holders are usually defined as after-tax interest + Net Income. Another description for the same thing is Net Operating Profit After Tax (NOPAT). With after-tax interest + Net Income, you start at the bottom of the income statement, and work your way up. With Net Operating Profit After Tax, you start a little higher in the income statement, and work your way down. From this definition of ROIC, you immediately see that the numerator of ROIC under normal economic circumstances is likely to be higher than the numerator of ROA: After-tax interest + Net Income should be higher than Net Income by itself. For the denominator of the equation, the sum of Debt and Equity is lower than Total Assets. If you compare ROIC to ROA, then the numerator in the ROIC equation is higher, and the denominator is lower. So in total, the outcome of the ROIC calculation should always be higher than the outcome of the ROA calculation. A related video compares ROIC to ROE, ROA and ROI: https://www.youtube.com/watch?v=cBaFHRfpOK8&index=15&list=PLKbmcnUUQMllBmY-09UdYNYZHBNHAODpR Let’s compare the way 3M, GM and Home Depot have defined and calculated ROIC, as we are not looking at apples-to-apples comparisons. 3M has nicely summarized why! Return on Invested Capital (ROIC) is not defined under U.S. generally accepted accounting principles. Therefore, ROIC should not be considered a substitute for other measures prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures by other companies. The Company defines ROIC as adjusted net income (net income including non-controlling interest plus after-tax interest expense) divided by average invested capital (equity plus debt)….” So 3M’s definition is very similar to the semi-official definition I showed earlier. Let’s go through each company’s ROIC calculation in detail. Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Return on capital | Finance & Capital Markets | Khan Academy
 
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Introduction to return on capital and cost of capital. Using these concepts to decide where to invest. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/investment-vs-consumption-1?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/human-capital?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: When are you using capital to create more things (investment) vs. for consumption (we all need to consume a bit to be happy). When you do invest, how do you compare risk to return? Can capital include human abilities? This tutorial hodge-podge covers it all. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 161635 Khan Academy
RETURN ON INVESTED CAPITAL IS WHAT MATTERS WHEN INVESTING IN THE STOCK MARKET (ROIC)
 
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What do I do? Full-time independent stock market analyst and researcher: https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform Check the comparative stock list table on my Stock market research platform under curriculum preview! I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More about me and some written reports at the Sven Carlin blog: https://svencarlin.com Stock market for modern value investors Facebook Group: https://www.facebook.com/groups/modernvalueinvesting/ Return on invested capital is one of the most important investment tools according to Charlie Munger. In this video I show how to calculate return on investment capital (ROIC), show two examples and how those affected stock market returns and individual stock returns. ROIC is more than just another financial metric, it is a financial performance indicator that really helps in the value creation of a company and for long term investment returns. ROIC is what made Buffett and Munger billionaires. I explain how you can become a billionaire or just millionaire too by using the roid.
ROCE (Return on Capital Employed) - Explained in Hindi
 
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Return On Capital Employed is explained in hindi. ROCE is an important financial ratio that gives overall returns on the total capital employed in the business. But 6 different analysts may calculate ROCE in 6 different ways. Return on Invested Capital or ROIC is also a similar metric but Return on Capital Employed is more popular. Related Videos: Return on Investment (ROI): https://youtu.be/ij7y5e2MVG4 Return on Equity (ROE): https://youtu.be/K-OhdUGqdzc Return on Assets: https://youtu.be/7z9jDKNub6U Profitability Ratios: https://youtu.be/pHgiuO2ZYoU Financial Ratios & Analysis: https://youtu.be/CZscpOND3Vs रिटर्न ऑन कैपिटल एम्प्लॉयड को इस वीडियो में हिंदी समझाया गया है। ROCE एक बहुत ही महत्वपूर्ण फाइनेंसियल रेश्यो है जो की बिज़नेस में लगाए गए टोटल कैपिटल पर ओवरआल रिटर्न्स बताता है। लेकिन 6 अलग-अलग अनलिस्ट्स 6 अलग-अलग तरीकों से आरओसीई की कैलकुलेशन कर सकते हैं। रिटर्न ऑन इनवेस्टेड कैपिटल या ROIC भी एक सिमिलर मीट्रिक है लेकिन रिटर्न ऑन कैपिटल एम्प्लॉयड ज़्यादा पॉपुलर है। Share this Video: https://youtu.be/FjWuma0U2x0 Subscribe To Our Channel and Get More Property, Real Estate and Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is the return on capital employed? What is the full form of ROCE? What is return on sales? How to calculate the returns using return on capital employed formula? Why is ROCE an important finance ratio? In this video about return on capital employed, we will understand the definition, calculation using an example. It's a useful metric for comparing the relative profitability of companies using the amount of total capital. But whenever you calculate ROCE for any company it is really important to stick to one calculation method to compare the statics with other companies. Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Twitter - http://twitter.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Linkedin - http://www.linkedin.com/company/asset-yogi Instagram - http://instagram.com/assetyogi Facebook – https://www.facebook.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Hope you liked this video in Hindi on “ROCE (Return on Capital Employed)”.
Views: 17967 Asset Yogi
Key Financial Metrics and Ratios: ROA, ROE, and ROIC
 
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Learn key financial metrics & ratios to analyze companies financial statements. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You’ll learn about the key metrics and ratios used to analyze companies’ financial statements, including Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC), as well as Inventory Turnover, Receivables Turnover, Payables Turnover, the Current Ratio, and the Asset Turnover Ratio. Table of Contents: 1:15 Why Metrics and Ratios Matter 4:58 Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC) 10:50 Asset-Based and Turnover-Based Ratios 14:40 Interpretation of Key Metrics and Ratios for Wal-Mart, Amazon, and Salesforce 19:32 Why the Key Metrics and Ratios Are Sometimes Not That Useful Why Metrics and Ratios? They let you evaluate and compare different companies, and see why one company might be worth more (higher valuation multiple) than others. They let you answer questions such as: How much equity is required to generate a certain amount of after-tax profit (Net Income)? How much in assets is required to generate a certain amount of after-tax profit (Net Income)? How much total capital is required to do this? How dependent is a company on its assets? How liquid is the company? Can it meet its obligations? How quickly does it sell all its Inventory, pay its outstanding invoices, and collect its receivables? ROA, ROA, and ROIC Return on Equity (ROE) = Net Income / Average Shareholders’ Equity Return on Assets (ROA) = Net Income / Average Assets Return on Invested Capital (ROIC) = NOPAT / (Total Debt + Equity + Other Long-Term Funding Sources) Return on Equity (ROE): How efficiently is a company using its equity to generate after-tax profits? Return on Assets (ROA): How well is a company using its assets / how dependent is it on them? Return on Invested Capital (ROIC): How well is a company using ALL its capital, or how much capital is required to grow its business? Here, Wal-Mart easily ranks #1 in all these metrics because it has a very high ROE of 20-25%, an ROA of close to 10%, and an ROIC of 13-14%; for Amazon and Salesforce, these numbers are negative or close to 0%. Asset-Based Ratios and Turnover-Based Ratios Asset Turnover Ratio = Revenue / Average Assets How dependent is a company on its asset base to generate revenue? Current Ratio = Current Assets / Current Liabilities How liquid is a company? Can it use its short-term assets to repay its short-term obligations, if required? Inventory Turnover = COGS / Average Inventory How many times per year does a company sell off all its Inventory? Receivables Turnover = Revenue / Average AR How quickly does a company collect its receivables from customers that haven’t paid in cash yet? Payables Turnover = COGS / Average AP (*) How quickly does a company submit cash payment for outstanding invoices? Interpretation of Figures for Wal-Mart, Amazon, and Salesforce On the surface, many of these metrics make Wal-Mart seem like a "better" company - much higher ROE, ROA, and ROIC, and Amazon is negative on some of those! Wal-Mart tends to have higher margins as well, and shows more consistency with those margins. Similar inventory management, but Wal-Mart collects from customers and pays invoices much more quickly than Amazon. Wal-Mart is levered a bit more heavily, though. And yet… Amazon is a much more expensive stock, or at least it was at this point in time, and the market values it much more highly based on metrics such as the P / E ratio. At the time of this analysis, Wal-Mart P / E Ratio = 16x, and Amazon P / E Ratio = 456x! How could that be possible? Is Amazon really nearly 30x as valuable as Wal-Mart with WORSE metrics? Answer: The "Revenue Growth" line tells the whole story here. You're comparing 2 very different companies – one is a mature, predictable, mostly slow-growing firm, and one is growing revenue at 20-30% per year, despite revenue in the tens of billions already. Admittedly, Amazon's valuation still seems ridiculous, but it's not that surprising it's valued more highly than Wal-Mart, given that it's growing 20-30x more quickly. The Bottom-Line: These metrics are MOST useful when comparing companies of similar sizes, growth rates, and margins – not as useful when you're comparing a high-growth company to a stable, mature firm. RESOURCES http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Amazon-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Salesforce-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Walmart-Financial-Statements.pdf
Return on Investment and Rate of Return
 
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Mathematical explanation of "Return on Investment" and "Rate of Return" with examples
Views: 21370 Christopher Vaughen
Return on Investment (ROI) - Calculation, Formula & Meaning (Hindi)
 
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ROI or Return on Investment calculation, formula and meaning are explained hindi. ROI is a profitability ratio which is also known as Return on Capital. In this video we learn the basics of Return on Investment. In coming videos, we will learn in detail about Return on Assets, Return on Capital Employed (ROCE) and Return on Equity. Related Videos: Return on Equity (ROE): https://youtu.be/K-OhdUGqdzc ROCE (Return on Capital Employed): https://youtu.be/FjWuma0U2x0 Return on Assets: https://youtu.be/7z9jDKNub6U Profitability Ratios: https://youtu.be/pHgiuO2ZYoU Financial Ratios & Analysis: https://youtu.be/CZscpOND3Vs इस वीडियो में ROI या Return on Investment की कैलकुलेशन, फार्मूला और मीनिंग को हिंदी में समझाया गया है। ROI एक प्रोफिटेबिलिटी रेश्यो होता है जिसे रिटर्न ऑन कैपिटल के रूप में भी जाना जाता है। इस वीडियो में हम Return on Investment के बारे में कुछ आधारभूत बातों के बारे में जानेंगे। आने वाले वीडियो में हम रिटर्न ऑन एसेट्स, रिटर्नऑन कैपिटल एम्प्लॉयड (ROCE) और रिटर्न ऑन इक्विटी के बारे में विस्तार से समझेंगे। Share this Video: https://youtu.be/ij7y5e2MVG4 Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is the return on investment or ROI? What is the meaning of ROI? How to calculate ROI? What is the full form of ROI? What is the method of return on investment calculation? How to implement the ROI calculation formula? How to calculate the expected return on investment? How to apply the ROI formula to calculate the profitability ratio of an investment? How to calculate Return on Capital? How to ROI calculation can help making a right investment decision? How to compare investment opportunities using return on investment formula? How to avoid losses using ROI calculation? How to calculate the overall profit of an investment? What is the return on capital? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Linkedin - http://www.linkedin.com/company/asset-yogi Google Plus – https://plus.google.com/+assetyogi-ay Twitter - http://twitter.com/assetyogi Instagram - http://instagram.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Facebook – https://www.facebook.com/assetyogi Hope you liked this video in Hindi on “Return on Investment (ROI)”.
Views: 42562 Asset Yogi
Investment Appraisal - How to Calculate ARR
 
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In this short revision video we explain how to calculate ARR (Average Rate of Return) - one of the three main methods of investment appraisal.
Views: 31789 tutor2u
NPV and IRR explained
 
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Net Present Value and Internal Rate of Return, in short NPV and IRR. What is the purpose of the NPV and IRR methods of investment analysis, and how do you calculate NPV and IRR? The main idea of Net Present Value is very simple: time is money! The net present value (or “discounted cash flow”) method takes the time value of money into account, by: - Translating all future cash flows into today’s money - Adding up today’s investment and the present values of all future cash flows If the net present value of a project is positive, then it is worth pursuing, as it creates value for the company. IRR is the discount rate at which the net present value becomes 0. In other words, you solve for IRR by setting NPV at 0. Related videos: How to calculate NPV in Excel https://www.youtube.com/watch?v=jQ_NDQ2qVVA How to calculate IRR in Excel https://www.youtube.com/watch?v=L0JCg5TXudc Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Capital Investment Models - Accounting Rate of Return
 
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Accounting rate of return or Accrual accounting rate of return Alternative method for calculating ARR or AARR Examples of using accounting rate of return
Cost of Capital and Cost of Equity | Business Finance
 
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http://goo.gl/qQjWG8 for more free video tutorials covering Business Finance. This video explains two important concepts of business finance- cost of capital & cost of equity. First part of the video discusses on cost of capital drawing an example of a firm in terms of debt and equity. The cost of capital primarily depends upon the use of funds not the source. Next, the video briefly discusses on cost of equity referring the returns that investors holding shares in a firm require subsequent to an explanation on SML approach and dividend growth model. Moving on the video also asks to calculate the cost of equity for an example of extremely prices shares. Step by step calculation has shown and ways to find out some important parameters are demonstrated visibly. Good understanding on cost of capital; cost of equity & there in between relationship as well as having knowledge on different methods of calculation is imperative to become an expert on today’s business finance and accountancy.
Views: 144498 Spoon Feed Me
What is WACC - Weighted Average Cost of Capital
 
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Weighted average cost of capital (WACC) is a way to measure the required rate of return of a company. Companies can use it to measure the profitability of a project. Investors can use it in something like discounted cash flow. ★☆★ Subscribe: ★☆★ https://goo.gl/qkRHDf Investing Basics Playlist https://goo.gl/ky7CJq Investing Books I like: The Intelligent Investor - https://amzn.to/2PVhfEL Common Stocks and Uncommon Profits - https://amzn.to/2DAV8h9 Understanding Options - https://amzn.to/2T9gFSp Little Book of Common Sense Investing - https://amzn.to/2DfFGG2 How to Value Exchange-Traded Funds - https://amzn.to/2PWSkRg A Great Book on Building Wealth - https://amzn.to/2T8AKZ1 Dale Carnegie - https://amzn.to/2DDAk8w Effective Speaking - https://amzn.to/2DBncAT Equipment I Use: Microphone - https://amzn.to/2T7JxL6 Video Editing Software - https://amzn.to/2RQM1vE Thumbnail Editing Software - https://amzn.to/2qIUAgP Laptop - https://amzn.to/2T4xA8Z DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment. #LearnToInvest #StocksToWatch #StockMarket
Views: 25832 Learn to Invest
IRR (Internal Rate of Return)
 
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This video explains the concept of IRR (the internal rate of return) and illustrates how to calculate the IRR via an example. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 700072 Edspira
NPV - Net Present Value, IRR - Internal Rate of Return, Payback Period.
 
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Project management topic on Capital budgeting techniques - NPV - Net Present Value, IRR - Internal Rate of Return, Payback Period, Profitability Index or Benefit Cost Ratio.
Views: 494558 pmtycoon
ACCA F2 Investment Appraisal (Capital Budgeting) NPV, IRR
 
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Net Present Value, Internal Rate of Return ACCA F2 Investment Appraisal (Capital Budgeting) Free lectures for the ACCA F2 Management Accounting / FIA FMA Exams
Views: 31219 OpenTuition
Capital Investment Models - Internal Rate of Return
 
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Calculating internal rate of return with examples using present value of annuity tables, Excel, and trial and error method with straight-line interpolation. PV annuity tables PV lump sum tables IRR
How to calculate Return on Equity
 
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Here’s an important question to ask about any investment you’re making: “Is this the best use of my money?” Hi everybody, Ron Phillips here with RPC Invest. https://www.rpcinvest.com/ Like us on Facebook: https://www.facebook.com/WealthAcceleratorSystem/ Blog Post: https://www.rpcinvest.com/blog Don’t forget to Comment and Subscribe if you liked this video! Thanks for checking out this video! A Question i get asked all the time is…. Why should i invest into Real Estate. http://www.ron-phillips.com/3xmarket/ The answer that your will video out if you check out in this video http://vimeo.com/99046951 is that rental properties are not only a great investment if you do it right! They can become a passive income that your can replace your current income with or stay at your day job and build your wealth on the side for an early retirement! With my FREE Wealth Accelerator System you will learn how to Double your Retirement in 45 days or Less! Watch Ron's new webinar here: https://goo.gl/KAd85k Not only will i teach you the RIGHT kind of property to look for, but i’ll also teach you how to create a positive cash flow. With our wealth plan we look at your net worth and set a goal to INCREASE net worth before retirement! You can click this link https://www.rpcinvest.com/weathplan and your current financial situation and set your financial goals and see how your net worth can grow using REAL investment properties! My main goal when i started this was to create a system that would give you FINANCIAL FREEDOM through an investment that gives you double digit returns. https://goo.gl/1MrD7G I don’t charge you a dime to learn this my system! We will help you find the right homes to start growing your WEALTH!
Views: 24742 InvestmentPropCoach
Capital Budgeting - Net Present Value (NPV) and Internal Rate of Return (IRR)
 
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Get our latest video feeds directly in your browser - add our Live bookmark feeds - http://goo.gl/SXUApX For Chorme users download Foxish live RSS to use the Live Feed - http://goo.gl/fd8MPl Academy of Financial Training's Tutorials on Level 1 2014 CFA® Program -- Corporate Finance Here we understand the concepts of Net Present Value (NPV) and Internal Rate of Return (IRR). There are some of the methods for evaluating projects for Capital Budgeting Decision making process. Full Course Available on http://goo.gl/XCUK4Q SUBSCRIBE for Updates on our Upcoming Training Videos Visit us: http://www.ftacademy.in/ About Us: Academy of Financial Training is training services company that specializes in providing a complete range of finance training services and solutions Since its incorporation AFT has trained more than 5,000 attendees in various finance domains, and is serving marquee Fortune 500 clients, making it one of the largest corporate training companies in India AFT's training modules include programs right from basic financial statements analysis to advanced financial modelling, corporate finance, risk management and capital markets, etc related trainings. CFA Institute (Organization), Chartered Financial Analyst (Profession), CFA Level 1, Alternative Investments, Finance, MBA, FRM, Financial Risk Management, B.Com, M.Com, Commerce
Investopedia Video: The Return On Invested Capital (ROIC)
 
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The ROIC is used to measure how well a company is investing its capital. An advantage of viewing a company's ROIC is that it provides investors an overview of a company's management performance. When a company consistently shows a high ROIC, it is considered a good investment and its shares tend to trade at a higher market price.
Views: 28494 Investopedia
Capital Budgeting Techniques (PB, ARR, NPV, PI & IRR) ~ Financial Management for B.Com/CA/CS/CMA
 
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Explained various capital budgeting techniques with the help of one single question which are : 1. Pay Back Method 2. Average Rate of Return Method 3. Net Present Value Method 4. Profitability Index Method 5. Internal Rate of Return Method Student can also watch the following lectures related with the Financial Management : 1. Capital Budgeting (Introduction) - Financial Management : https://www.youtube.com/watch?v=ZOaGNDmKpzo 2. How to calculate PVF, PVAF, CVF, CVAF values on calculator : https://www.youtube.com/watch?v=cUTDq6hpais 3. Present Value of Perpetuity : https://www.youtube.com/watch?v=gVxvJ_JTiug 4. Time Value of Money (Introduction) - Financial Management : https://www.youtube.com/watch?v=oeox8DLagHU 5. Cost of Capital (Cost of Debt, Preference Shares, Equity and Retained Earnings) - Financial Management : https://www.youtube.com/watch?v=VGN_IonxroE 6. Cash Budget (Introduction) : https://www.youtube.com/watch?v=s1Yx5bFOZfo 🔴 Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal 🔴 Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing 🔴 Connect with Google+: https://plus.google.com/u/0/+CANareshAggarwal #CapitalBudgeting #FinancialManagement
Views: 455405 CA. Naresh Aggarwal
Capital Investment Decision&Time Value of Money- Managerial Accounting- C21- Professor Victoria Chiu
 
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Lecture 11: Capital Investment Decisions and the Time Value of Money by Professor Victoria Chiu (Chapter 21) This lecture focuses primarily on capital budgeting. The topics of payback period and rate of return are discussed as well as the methods for calculating them. Lastly, the concept of time value of money is explained, as well as the many terms that fall under it (annuities, future values, present values, number of periods, interest, and more). Begins with Overview of New Topic and Learning Objectives of Chapter Capital Budgeting (defined): 2:47 Cash Flows: 8:48 (relation to Capital Budgeting) Capital Budgeting Process (diagram): 12:50 Payback Period (defined): 17:35 Calculating Payback Period: 19:19 Criticisms of Payback Period: 28:24 Rate of Return (defined): 30:26 Calculating Rate of Return: 35:21 Rate of Return Decision Rule: 43:35 Exercise S21-2: 45:11 (Using payback period and rate of return methods to make capital investment decisions) Exercise S21-2 Solution: 51:51 Time Value of Money (defined): 1:01:22 Factors That Affect Time Value of Money: 1:03:27 Interest: 1:05:45 Present and Future Value Along a Time Continuum: 1:07:52 Factors for Present and Future Value: 1:09:16 Using Future Values (FV factors table): 1:09:36 Using Future Values for Annuities: 1:11:28 To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
Views: 13055 Rutgers Accounting Web
Weighted Average Cost of Capital (WACC)
 
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This video explains the concept of WACC (the Weighted Average Cost of Capital). An example is provided to demonstrate how to calculate WACC. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 379964 Edspira
How to Calculate ROI (Return on Investment)
 
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Watch more How to Start a Business videos: http://www.howcast.com/videos/437106-How-to-Calculate-ROI-Return-on-Investment Return on investment, or ROI, is the overall profit made on an investment expressed as a percentage of the amount invested -- one of the most important gauges of business success. Learn how to figure out your ROI. Step 1: Determine net profit Determine the company's net profit, also known as net earnings. Tip Make sure not to confuse net profit with gross revenue. Step 2: Calculate total investment Calculate the total investment, which can be found by adding total debt to total equity. Step 3: Multiply by 100 Divide the net profit by the total investment and multiply by 100 to find the basic return on investment. If the net profit is $100,000 and the total invested is $300,000, then the return on investment would be 33 percent. Step 4: Compute stock ROI Compute the return on stock investments with a variation of the basic formula. Step 5: Find the value Imagine you invest $5,000 in a company. One year later, the stock's value has risen to $5,200 and you earn $100 in dividends. Use the new formula to calculate your ROI at 6 percent. Did You Know? In 1919, the DuPont company developed their own ROI formula, known as the DuPont Formula.
Views: 46233 Howcast
How to calculate Return on Investment
 
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Hi everybody, Ron Phillips here with RPC Invest. https://www.rpcinvest.com/ Like us on Facebook: https://www.facebook.com/WealthAcceleratorSystem/ Blog Post: https://www.rpcinvest.com/blog Don’t forget to Comment and Subscribe if you liked this video! Thanks for checking out this video! A Question i get asked all the time is…. Why should i invest into Real Estate. http://www.ron-phillips.com/3xmarket/ The answer that your will video out if you check out in this video http://vimeo.com/99046951 is that rental properties are not only a great investment if you do it right! They can become a passive income that your can replace your current income with or stay at your day job and build your wealth on the side for an early retirement! With my FREE Wealth Accelerator System you will learn how to Double your Retirement in 45 days or Less! Watch Ron's new webinar here: https://goo.gl/KAd85k Not only will i teach you the RIGHT kind of property to look for, but i’ll also teach you how to create a positive cash flow. With our wealth plan we look at your net worth and set a goal to INCREASE net worth before retirement! You can click this link https://www.rpcinvest.com/weathplan and your current financial situation and set your financial goals and see how your net worth can grow using REAL investment properties! My main goal when i started this was to create a system that would give you FINANCIAL FREEDOM through an investment that gives you double digit returns. https://goo.gl/1MrD7G I don’t charge you a dime to learn this my system! We will help you find the right homes to start growing your WEALTH!
Views: 149338 InvestmentPropCoach
Finance Lecture - Risk, Return and CAPM
 
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If you found this video helpful, click the below link to get some additional free study materials to help you succeed in your finance course! http://www.coursecrusher.io/freestudypack/
Views: 218361 Brad Simon
3 Easy Steps! IRR Internal Rate of Return Lecture on How to Calculate Internal Rate of Return
 
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OMG wow! Soooo easy I subscribed here http://www.youtube.com/subscription_center?add_user=mbabullshitdotcom for Internal Rate of Return or IRR. In advance of going deeper into this approach, we need to evaluate the definition of "Rate of Return" (with no "internal" yet). Rate of Return would be the "speed" you are going to earn back profit on an annual basis, every twelve months, endlessly, in contrast to an amount you in the beginning invest. With the intention that it can be compared to the invested bigger sum, this is written just like a percent (%). By way of example, if you invest 100 dollars, and you earn back 3 dollars per annum endlessly, then the "rate of return" is 3%. Trouble-free, is it not? But let us alter the situation somewhat. Suppose, on the same $100 investment previously mentioned, you will definitely make money for a couple of years... and not all in identical amounts in each year? And what if the money coming in will likely stop after a certain number of years? For instance, you are going to get $5 on your 1st year, possibly $8 on your 2nd year, $3 around the third year, and $95 during the fourth year (which could become a final year... so it's not ad infinitum). What is the rate of return now? As you can tell, on this most recent problem, it isn't really easy to find the percentage rate. This is because it's not as simple as in the initial case above for the reason that the annual cash flow is not just a standardizedsum (similar to the $3 in the initial situation above) and it's not without end. This percentage within this newest situation has become popularly known as Internal Rate of Return. Given that it is really not simple to get the percentage, we can easily declare it really is like "a hidden" percent... therefore the term "internal"... due to the reason that the word "internal" is similar to a formal way of expressing "hidden". How is the principle beneficial? If the IRR of your respective undertaking or business enterprise is less than your cost of debt or the total interest rate you would pay to your bank (in case you raise funds money coming from the bank to do the investment or plan), then it is a foul deal. Exactly why? Remember! Because if you will pay 3% to your bank to accomplish a venture or make an investment decision, and then it produces an IRR of only 2%, then you definitely lose 1%. Then again, when your IRR or Internal Rate of Return is above the percentage at which one would borrow from the bank to cover an investment or task, then it is a fine deal, as a result of the helpful "spread" in between your rate of return and cost of debt. Similarly, in case your IRR is the same thing as the interest one would pay to your bank, then you're break-even. This, in summary, is really a simple clarification of IRR. Note that in more difficult problems, you might weigh up your internal rate of return not simply to your cost of debt, but to you cost of equity or weighted average cost of capital or WACC instead. http://www.youtube.com/watch?v=KKqzSGMz9Sk what is irr, the internal rate of return, what is internal rate of return, irr, internal rate of return, khan academy, investopedia
Views: 556103 MBAbullshitDotCom
FIN 300 - Internal Rate of Return (IRR) Overview - Ryerson University
 
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LIST OF FIN300 VIDEOS ORGANIZED BY CHAPTER http://www.fin300.ca FIN300 FIN 300 CFIN300 CFIN 300 - Ryerson University ADMS 3530 - York University Key Words: MHF4U, Nelson, Advanced Functions, Mcgraw Hill, Grade 12, Toronto, Mississauga, Tutor, Math, Polynomial Functions, Division, Ontario, University, rick hansen secondary school, john fraser secondary school, applewood heights secondary school, greater toronto area, lorne park secondary school, clarkson secondary school, mpm1d, mpm2d, mcr3u, mcv4u, tutoring, university of waterloo, queens university, university of western, york university, university of toronto, finance, uoft, reciprocals, reciprocal of a function, library, bonds, stocks, npv, equity, balance sheet, income statement, liabilities, CCA, cca tax shield, capital cost allowance, finance, managerial finance, fin 300, fin300, fin 401, fin401, irr, profitability index,
Views: 79081 AllThingsMathematics
How to Calculate NPV, IRR & ROI in Excel || Net Present Value  || Internal Rate of Return
 
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Try my Hands-on Python for Finance course on Udemy: https://www.udemy.com/hands-on-python-for-finance/ http://alphabench.com/data/excel-npv-irr-tutorial.html Tutorial demonstrating how to calculate NPV, IRR, and ROI for an investment. Demonstrates manual calculation of present values as well as the use of NPV and IRR functions in Excel. The spreadsheet used can be downloaded at: http://alphabench.com/data/NPV-IRR_STR.xlsx Capital Budgeting includes the analysis of various projects with financial measurements such as Net Present Value (NPV), Internal Rate of Return (IRR) and Return on Investment (ROI). This video discusses all of these concepts briefly while demonstrating the calculation of them using Excel. Excel Functions: NPV IRR
Views: 67854 Matt Macarty
Technique of Capital budgeting:- Average Rate of Return in hindi
 
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Thank you friends to support me Plz share subscribe and comment on my channel and Connect me through Instagram:- Chanchalb1996 Gmail:- [email protected] Facebook page :- https://m.facebook.com/Only-for-commerce-student-366734273750227/ Unaccademy download link :- https://unacademy.app.link/bfElTw3WcS Unaccademy profile link :- https://unacademy.com/user/chanchalb1996 Telegram link :- https://t.me/joinchat/AAAAAEu9rP9ahCScbT_mMA
Views: 12532 study with chanchal
capital investment appraisal
 
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calculations for payback, ARR, NPV and IRR NPV IRR Payback AAT Level 3 Costing Costing
Views: 564 Andrew Harrison
Financial investment tutorial: Understanding return on investment (ROI) | lynda.com
 
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Every investment is expected to deliver a return, but what does "return" mean exactly? Find out in this tutorial, which defines return on investment (ROI) and shows how to calculate ROI. Watch more at http://www.lynda.com/Business-Data-Analysis-tutorials/Financial-Literacy-Making-Investment-Decisions/145931-2.html?utm_campaign=JWYCs8rRHzg&utm_medium=viral&utm_source=youtube. This tutorial is a single movie from Making Investment Decisions by lynda.com author Rudolph Rosenberg. The complete course is 56 minutes and shows how to evaluate investments, assess risk, calculate a rate of return, and identify good professional and personal investment opportunities—no finance background required. Introduction 1. What Is an Investment? 2. The Net Present Value (NPV) Methodology 3. Application to Real-Life Situations Conclusion
Views: 26009 LinkedIn Learning
Nominal vs Real Rate of Return | Inflation-Adjusted Return on Investments | Concepts by Yadnya
 
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In finance and economics, nominal rate refers to the rate before adjustment for inflation (in contrast with the real rate). The real rate is the nominal rate minus inflation. Real rate of return can indeed be negative. When real rate of return are negative, it means that the inflation rate is larger than the nominal interest rate. Measuring the real rate of return lets investors determine if they are actually making money and growing purchasing power on an investment. If the real rate of return is not larger than inflation, the investor is losing money. Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/yadnyaacademy/?fref=ts Facebook Group - https://goo.gl/y57Qcr Twitter - https://mobile.twitter.com/investyadnya
Using payback period and rate of return methods to make capital investment decisions
 
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Please like our Facebook page at https://www.facebook.com/rutgersweb To watch the entire video, please go to https://www.youtube.com/watch?v=d4qBR5I7MKU Description: This lecture focuses primarily on capital budgeting. The topics of payback period and rate of return are discussed as well as the methods for calculating them. Lastly, the concept of time value of money is explained, as well as the many terms that fall under it (annuities, future values, present values, number of periods, interest, and more). To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
Average Rate of Return (ARR) Calculation
 
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Brief description how to calculate Average Rate of Return. Useful for IBDP Business Management Unit 3.8
Views: 64882 Jason Marchant
How to Calculate ROI (Return On Investment) in Excel
 
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How to calculate ROI in Excel using formula. dollar return on investment excel spreadsheet, how to calculate roi in excel percentage Excel File: http://www.uploadkr.com/users/wajahat/ROI_20.xlsx If you have any question please feel free to ask. Don't forget to SUBSCRIBE Source: investopedia.com How to Calculate ROI ROI Calculation in Excel ROI Calculation - Made easy How to calculate Return on Investment roi calculation in excel how to calculate roi in excel how to calculate return on investment in excel calculating return on investment in excel how to calculate training roi in excel measure roi in excel
Views: 44915 InnoRative
DuPont analysis explained
 
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DuPont equation tutorial. ROE: Return On Equity. ROA: Return On Assets. ROS: Return On Sales. This video takes you through the financial ratios of the ROE formula, the ROA formula, the ROS formula, asset turnover and leverage, and shows how they fit together. The very basics and the very essence of financial ratio analysis! ROE or Return On Equity is defined as Net Income divided by Equity. In other words, the net profit that a company has generated during a year, divided by the book value of the shareholder capital invested in the company. ROE is a measure of the rate of return to shareholders. The 3-part version of the DuPont analysis shows you that ROE = ROS x asset turnover x leverage. The first two elements together, ROS multiplied by Asset Turnover, form ROA, Return On Assets. This ratio of ROA has many variations, some companies measure ROIC Return On Invested Capital, ROTC Return On Total Capital, ROCE Return On Capital Employed, or RONOA Return On Net Operating Assets. These are all variations on the same theme, you look at the returns (profit) generated during a period, and compared them to the capital invested in the company to generate those returns. ROA is an indicator of business success, influenced by two factors: ROS or margin performance, and asset turnover which you could call speed or velocity. ROS or Return On Sales, is Net Income divided by Sales, which is an indicator of the relative profitability or operating efficiency: how many cents of profit are generated for every dollar of sales? Asset Turnover is calculated as Sales divided by Assets, a measure of asset use efficiency. The last element of the DuPont 3-part equation is leverage, Assets divided by Equity. You can expand the DuPont formula to 5 steps, if you want even more analytical insight into the drivers of where your ROE increase or decrease is coming from. The two elements on the right stay the same: asset turnover and leverage. However, ROS gets split into three elements: Net Income divided by Earnings Before Tax, which is called tax burden, Earnings Before Tax divided by EBIT, called interest burden, and EBIT divided by sales, which is EBIT%. In a lot of companies, improving the EBIT% and increasing the Asset Turnover, are important targets for the management team, whereas the other elements are for the finance, treasury and tax departments to manage. For an illustration of Return On Assets, my follow-up video analyzing ROA, ROS and asset turnover of Verizon and Walmart is highly recommended https://www.youtube.com/watch?v=2j8bfR8KqJ0 Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
What's a realistic rate of return over the next decade for a balanced portfolio?
 
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12/10/2018 Webcast: The 2019 economic and market outlook Vanguard Global Chief Economist Joe Davis shares what his team projects as a realistic return over the next decade for a balanced portfolio—meaning one comprising 60% equities and 40% fixed income investments—which at 4 to 4.5% is below historical averages. As he explains, the Vanguard Economic and Market Outlook for 2019 anticipates some variance in performance in U.S. versus non-U.S. markets, as well as fixed income vs. equities—underscoring the importance of periodic rebalancing and maintaining a diversified portfolio. IMPORTANT INFORMATION All investing is subject to risk, including the possible loss of the money you invest. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Diversification does not ensure a profit or protect against a loss. Past performance is not a guarantee of future results. Investments in bonds are subject to interest rate, credit, and inflation risk. Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets. IMPORTANT: The projections and other information generated by the Vanguard Capital Markets Model® (VCMM) regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. VCMM results will vary with each use and over time. The VCMM projections are based on a statistical analysis of historical data. Future returns may behave differently from the historical patterns captured in the VCMM. More important, the VCMM may be underestimating extreme negative scenarios unobserved in the historical period on which the model estimation is based. The Vanguard Capital Markets Model is a proprietary financial simulation tool developed and maintained by Vanguard’s primary investment research and advice teams. The model forecasts distributions of future returns for a wide array of broad asset classes. Those asset classes include U.S. and international equity markets, several maturities of the U.S. Treasury and corporate fixed income markets, international fixed income markets, U.S. money markets, commodities, and certain alternative investment strategies. The theoretical and empirical foundation for the Vanguard Capital Markets Model is that the returns of various asset classes reflect the compensation investors require for bearing different types of systematic risk (beta). At the core of the model are estimates of the dynamic statistical relationship between risk factors and asset returns, obtained from statistical analysis based on available monthly financial and economic data from as early as 1960. Using a system of estimated equations, the model then applies a Monte Carlo simulation method to project the estimated interrelationships among risk factors and asset classes as well as uncertainty and randomness over time. The model generates a large set of simulated outcomes for each asset class over several time horizons. Forecasts are obtained by computing measures of central tendency in these simulations. Results produced by the tool will vary with each use and over time. Advice services are provided by Vanguard Advisers, Inc., a registered investment advisor, or by Vanguard National Trust Company, a federally chartered, limited-purpose trust company. © 2018 The Vanguard Group, Inc. All rights reserved.
Views: 11647 Vanguard
Finance tutorials | Performance Evaluation part 1: Return on Investment Capital - ROIC
 
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Return on Investment Capital (ROIC), Operating Profitability ratio (OP) and Capital Requirement ratio (CR).
Views: 16 Hai H.Trinh
IRR vs MIRR - The Problem With IRR Explained
 
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In this video, I explain the difference between IRR & MIRR and walk through several examples applying the two concepts. What is MIRR? How is it used to judge capital projects? A study completed by McKinsey identified the key weakness of using IRR as an indicator of strength for capital projects. The reinvestment assumption assumes that any interim cash flows from the project will be reinvested at the same IRR throughout the investment period, an assumption truly flawed. By using MIRR, analysts are better able to judge a project's true value by reinvesting interim cash flows at the company's cost of capital. Read the full report at: http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/internal-rate-of-return-a-cautionary-tale If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories. http://seekingalpha.com/author/robert-bezede/articles#regular_articles
Views: 15453 FinanceKid
Investment Decision Rules Part 1: Net Present Value and Internal Rate of Return
 
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This video is part of a series of lectures that comprise an MBA level course in Corporate Finance. The lectures build on concepts and principals developed in previous lectures and, therefore, are best viewed in sequence. However, each lecture is divided into topics which can provide students (MBA and advanced undergraduates) with a helpful review of a specific topic. Persons preparing to take the CFA Exams will also find these lectures useful. The course consists of the following video lectures: 1. Investment Decisions and the Fundamentals of Value. 2. Financial Statements and Cash Flow (5 parts) 3. Discounted Cash Flow Valuation (6 parts) 4. Investment Decision Rules (5 parts) 5. Making Capital Investment Decisions (2 parts) 6. Valuation of Bonds (4 parts) 7. Stock Valuation (3 parts) 8. Lessons from Capital Market History (3 parts) 9. Risk and Return (3 parts) 10. CAPM (3 parts) 11. Risk and Capital Budgeting (3 parts) 12. Capital Budgeting Analysis (3 parts)
Views: 15767 shszewczyk
Airline Financials - Return on Invested Capital - Part 2
 
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ROIC is coming into focus now that the financial condition of the airline idustry is improving. Airlines that earn a return that is greater than their cost of capital (WACC) create value for their investors.
Views: 1939 RickZeniRMVideos
CAPM Capital Asset Pricing Model in 4 Easy Steps - What is Capital Asset Pricing Model Explained
 
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OMG wow! I'm SHOCKED how easy clicked here http://www.MBAbullshit.com for CAPM or Capital Asset Pricing Model. This is a model applied to indicate an investor's "expected return", or how much percentage profit a company investor ought to logically demand to be a "fair" return for making investments into a company. http://mbabullshit.com/blog/2011/08/06/capm-capital-asset-pricing-model/ To find this, yet another question can be queried: Just how much is the sound "decent" percentage % profit that a financier should probably receive if he invests in a business (having comparatively high risk) in contrast to putting his money in government bonds which might be regarded to be "risk free" and instead of putting his hard earned cash in the general share market presumed to offer "medium" risk? Visibly, it is almost only "fair" that in fact the investor receives a gain higher compared to the government bond percentage (due to the reason that the solitary enterprise possesses higher risk). It's moreover only just that he should expect a return larger than the broad stock exchange yield, because the specific business enterprise has higher risk compared to the "medium risk" general stock market. So just as before,how much exactly should this investor fairly receive as a smallest expected return? This is where the CAPM Model or Capital Asset Pricing Model comes in. The CAPM Formula includes all these variables simultaneously: riskiness of the individual firm depicted by its "beta", riskiness of the universal stock market, rate of interest a "risk free" government bond would give, as well as others... and then spits out an actual percent which your investor "should be allowed" to take for investing his or her hard earned money into this "riskier" single firm. This particularly exact percent is known as the "expected return", given that it can be the yield that he should "expect" or require to obtain if he invests his hard earned cash into a specific firm. This precise percentage is known as the "cost of equity". The CAPM Model or CAPM Formula looks something like this: Expected Return = Govt. Bond Rate + (Risk represented by "Beta")(General Stock Market Return --Govt. Bond Rate) Utilizing this formula, you are able to see the theoretically exact rate of return theindividual business enterprise investor ought to reasonably expect for his or her investment, if the CAPM Model or Capital Asset Pricing Model is to be held. http://www.youtube.com/watch?v=LWsEJYPSw0k What is CAPM? What is the Capital Asset Pricing Model?
Views: 520323 MBAbullshitDotCom
ACCA F9 Course Investment Appraisal 01 Accounting Rate of Return
 
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In ACCA F9 syllabus, investment appraisal is the most important part in terms of weighting in the exam. From our statistics, investment appraisal shares around 25% of total marks in ACCA F9 exam. Students are encouraged to study this topic in very depth so they can pass the exam. Investment appraisal can be divided into non discounted cash flow (Non DCF) methods and discounted cash flow (DCF) methods. It is a video sharing 1 of Non DCF methods, Accounting Rate of Return (ARR) or Return on Capital Employed (ROCE). In addition to share with students on what components should be considered in the calculation of ARR, an example is also shared on how to get the answer. Besides, the advantages and weaknesses of ARR are shared in which the discursive question or objective test question may ask students on it.
Views: 826 Got it Pass
Investment Appraisal - Payback Period
 
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The payback period method of investment appraisal is explained in this revision video.
Views: 68659 tutor2u
Relevant Cash Flows for an Asset Investment, James Tompkins
 
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Net present value, internal rate of return and other analyses pertinent to the asset investment decision (capital budgeting) are applied to a timeline of cash flows. But how do you calculate these cash flows? This is what I explore in this video.
Views: 2260 Understanding Finance
BEC CPA questions Internal rate of return IRR
 
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CPA BEC questions, capital budgeting, net present value, NPV, IRR, INternal rate of return, return on investment, return, IRR, payback period, cost of capital, simple rate of return, accounting rate of return
Marginal Efficiency of Capital (HINDI)
 
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Keynes introduced the concept of Marginal Efficiency of Capital as one of the determinants of investment demand in the economy. MEC in a sense helps measure the rate of return over the capital. MEC is important as it is on the basis of it we can find as to how much investment in the economy can be induced by reducing the rate of interest. #YOUCANLEARNECONOMICS
Views: 25681 E.Z. Classes