by mbalectures | Dec 9, 2010 | Introduction to Finance

Calculation of annuities is an important topic of basic finance and requires simple calculation to find the present or future value of any amount. one can value an annuity with two ways. It is therefore a limited count of cash flows, the slow or first way is to...
by mbalectures | Dec 9, 2010 | Introduction to Finance

Any decision maker or analyst should first understand the unique characteristics and environment of the respective industry in which it functions. For example manufacturing or wholesalers tend to have lower current ratio than retailers. The businesses which do not...
by mbalectures | Dec 5, 2010 | Introduction to Finance

The current ratio measurement tells us about the ability of the company’s short term debt paying. This ratio is computed by dividing total current assets by total current liabilities. Current ratio shows whether the current assets of a company are greater or...
by mbalectures | Dec 5, 2010 | Introduction to Finance

Working capital is an important financial measurement used to analyze the financial position or strength of the company. Working capital is mostly used to find out the relationship between current liabilities and current assets. Actually, working capital is the excess...
by mbalectures | Sep 29, 2010 | Introduction to Finance

Amount today is worth more than amount tomorrow. In many cases it becomes important to know the present value of accumulated return of an investment. This gives a clear idea to the investors about the worth of an investment. Present values can be calculated by using...
by mbalectures | Sep 28, 2010 | Introduction to Finance

The basic difference between simple and compound interest is that the simple interest is only calculated on the principal amount and does not contain the accumulated interest from prior periods. On the other hand compound interest is known as the interest on interest....