Return on owners equity & return on equity may mean the same the thing when it comes to a corporation, i.e., it measures the efficiency at which the profit(in this case Net income after Tax) is being generated per unit of owner's contribution to the company.
Return on Investment is a very broad term as it measures the efficiency at which the profit is being generated per unit of "Investment". Investment can include debt+equity/debt.
Why have Australian and NZ financial institutions largely escaped the worst of the problems besetting institutions in the US, the UK, Ireland and Germany?
@iwantgovtjob said: Hi if company A has equity capital- 2 lacs company B- equity capital- 50,000, reserves - 1,50,000 Which company market value is higher
Market Value can be stated as company's Market capitalization (mkt value of outstanding shares) plus debt in the books.
@vishal.das said: Why have Australian and NZ financial institutions largely escaped the worst of the problems besetting institutions in the US, the UK, Ireland and Germany?
@[316381:visionIIM-ACL] @[364443:abhimukh19] @[241172:harry4u9] @[169132:naga25french] @[379979:kapil.viit] help ....
NZ hasnt been unscathed but ya the effect on them hasnt been much....will get back on this but generally the stability of banking system is a function of strength of fiscal & monetary policies in the country
Harry i was wondering that when we calculate WACC( market weight) Then we calculate total market value = no of shares * share value But then we divide it into equity and reserves in proportionate terms.
So does that means if total equity = 20,000 and reserves = 1,80,000 and second case equity capital= 2,00,000 market value is same ?
puys i wanted to know whether these financial modeling and advance excel courses are helpful or not? i am an MBA Finance fresher pursuing ICFAI CFA so if i go for such a course in excel will it help in getting a good job in terms of profile? there is an institute in delhi INVESTMENT BANKING INSTITUTE that provides such courses. so should i go for it? suggestions please?
@iwantgovtjob said: Harry i was wondering that when we calculate WACC( market weight) Then we calculate total market value = no of shares * share value But then we divide it into equity and reserves in proportionate terms. So does that means if total equity = 20,000 and reserves = 1,80,000 and second case equity capital= 2,00,000 market value is same ?
@[582498:iwantgovtjob] WACC is the rate used to find out the average cost of raising new capital((w1Ke+w2Kd)/w1+w2) whereas mkt value is no of equity shares* mkt price....i dont seem to get ur question...pls elaborate? :lookaround:
@deejaygr8 said: puys i wanted to know whether these financial modeling and advance excel courses are helpful or not? i am an MBA Finance fresher pursuing ICFAI CFA so if i go for such a course in excel will it help in getting a good job in terms of profile? there is an institute in delhi INVESTMENT BANKING INSTITUTE that provides such courses. so should i go for it? suggestions please?
i guess they will only land u in some entry level job in the research profiles....depends on whether u call it a good job
@harry4u9 said: @iwantgovtjob WACC is the rate used to find out the average cost of raising new capital((w1Ke+w2Kd)/w1+w2) whereas mkt value is no of equity shares* mkt price....i dont seem to get ur question...pls elaborate?
Harry but when we calculate WACC by Market weight method will use market value method . This case i am asking
