The Accounting and Finance Community
The break even formula is a powerful business tool that provides you the point a project or business will cover its fixed and variable costs. We work through a couple of examples and provide an online calculator to help along the way.
The current ratio formula is a simple and yet powerful business tool to help you assess a business’s liquidity, i.e. its ability to pay current debts as they fall due. Online calculator included.
The dividend discount model is based on the theory that the price of a share should be equal to the present value of the future dividend payments. The dividend discount model … Read More
The Accounting Rate of Return method is one of the most widely used techniques for investment appraisals and capital budgeting decisions. The accounting rate of return provides you with the return … Read More
Break-even analysis is a powerful tool in the management of any business. Still, it does come with several limitations and assumptions, which we will look at today. It is easier … Read More
The Adjusted Present Value approach is a way to determine whether raising debt to undertake a specific project will add value or in other words if it will result in … Read More
