Financial leverage is one of the best ways in which company increases its profit is through. Financial leverage uses debt instruments so that the anticipated level return on the company's equity would increase. The level of financial leverage of a certain company is determined by getting the total value of debt and the equity and the ratio of debt. The level of financial … [Read more...]
How to use DuPont Analysis in investment and financial analysis
While choosing which assets to include in a portfolio, an in-depth analysis of the investment alternatives is made. If one of the alternatives is an ownership share in a corporation, then it is observed that the DuPont ratio is the best tool used to analyze that investment. The DuPont model was internally developed by Du Pont as a tool to measure its investment projects, … [Read more...]
DuPont analysis
DuPont analysis is an expression which breaks ROE (Return On Equity) into three parts. With this method, assets are measured at their gross book value rather than at net book value in order to produce a higher return on equity (ROE). It is also known as "DuPont identity". A type of analysis that examines a company's Return on Equity (ROE) by breaking it into three main … [Read more...]
leverages , letter of renunciations :terms of stock trading
Letter of Renunciation Written notification through which a allottee-stockholder (shareholder) renounces or transfers to other stockholder(s) the securities allotted to him or her out of a new issue or a rights issue. These letters of renunciation can be sold in the market, if the company’s shliares are sought after and the terms of the rights offer are … [Read more...]