Numerous academics have published studies investigating the effects of buying value stocks. These studies have consistently found that value stocks outperform growth stocks and the market as a whole….
Present Value of an Annuity Definition
Posted on Posted on: 05.08.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Present Value of an Annuity DefinitionThis problem calculates the difference between the present value (PV) of an ordinary annuity and an annuity due. The timing difference in the payments is illustrated in an Excel schedule….
Simple interest formula and examples
Posted on Posted on: 05.08.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Simple interest formula and examplesYou then add the discounted cash flows together and subtract the cost of the initial investment from that sum. The PV function returns the value in today’s dollars of a series of future payments, assuming periodic, constant payments and a constant in…
NPV Formula
Posted on Posted on: 05.08.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on NPV FormulaThe Excel NPV function is a financial function that calculates the net present value (NPV) of an investment using a discount rate and a series of future cash flows. Project X requires an initial investment of $35,000 but is expected to generate reven…
Present Value Factor Formula
Posted on Posted on: 05.08.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Present Value Factor FormulaIf we have a certain amount of money and we want to figure out today’s value, what could we do? Well, to go from here to here, what did we do? We essentially took $100 and we multiplied by- what did we multiply by– 1 plus 5%. So to go the other way,…
What is Prepaid Rent? – Basic Accounting Help
Posted on Posted on: 04.08.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on What is Prepaid Rent? – Basic Accounting HelpRecall that prepaid expenses are considered an asset because they provide future economic benefits to the company. A prepaid rent asset account is debited for the same amount. As each month passes, one rent payment is credited from the prepaid rent a…
What are Direct and Indirect Expenses?
Posted on Posted on: 04.08.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on What are Direct and Indirect Expenses?The company’s total costs are a combination of the fixed and variable costs. If the bicycle company produced 10 bikes, its total costs would be $1,000 fixed plus $2,000 variable equals $3,000, or $300 per unit….
Common vs. Preferred Stock
Posted on Posted on: 04.08.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Common vs. Preferred StockShareholders of preferred stock receive fixed, regular dividend payments for a specified period of time, unlike the variable dividend payments sometimes offered to common stockholders. Of course, it’s important to remember that fixed dividends depend…
Advantages of Preferred Stock
Posted on Posted on: 04.08.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Advantages of Preferred StockThe decision to pay the dividend is at the discretion of a company’s board of directors. In a liquidation, preferred stockholders have a greater claim to a company’s assets and earnings. This is true during the company’s good times when the company h…
How can we change our fate or destiny?
Posted on Posted on: 04.08.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on How can we change our fate or destiny?Ultimately he believed that the problem of free will was a metaphysical issue and, therefore, could not be settled by science. Moreover, he did not accept incompatibilism as formulated below; he did not believe that the indeterminism of human actions…