A stock split is the division of a share into two or more parts. Stock split adds no value but increases the number of shares in the ratio of the split. By splitting of shares the capital of the company does not increase, but the capital is only redistributed by increased number of shares. A stock split is a decision [...]
In this article we will discuss about the similarities and benefits of American Depository Receipts (ADRs) and Global Depository Receipts (GDRs). Issue of ADRs and GDRs: Depository Receipts (DRs) are a type of negotiable (transferable) financial security that can be traded on a local stock exchange, representing ownership of shares in companies of other countries. As a part of globalizing [...]
EFR is calculated with the help of following formula, when other ratios remain constant: Where, A/S = Total assets/Sales Total assets include both current assets and fixed assets L/S = Current liabilities and provisions/Sales S = Sales of current year S1 = Projected sales of next year ΔS = Expected increase in sales over current year (S-S1) M = Net [...]