In this article we will discuss about:- 1. Meaning of Forecast 2. Financial Forecasting Techniques 3. Benefits. Meaning of Forecast: A forecast is a prediction of what is going to happen as a result of a given set of circumstances. The dictionary meaning of 'forecast' is 'prediction, provision against future, calculation of probable events, foresight, prevision'. In business sense it [...]
EFR is calculated with the help of following formula, when other ratios remain constant: Where, A/S = Total assets/Sales L/S = Current liabilities and provisions/Sales ∆S = Expected increase in sales over current year (S-S1) S = Sales of current year S1 = Projected sales of next year D = Dividend payout ratio M = Net profit margin The expected [...]
The following points highlight the four main types of shares offered by a company. The types are: 1. Equity Shares 2. Preference Shares 3. Non-Voting Shares (NVS) 4. Other Forms of Shares. Type # 1. Equity Shares: An equity interest in a company may be said to represent a share of the company's assets and a share of any profits [...]