Risk-free Investment Model
Risk-free Investment Suppose there is no risk or a problem that needs to be faced. By claiming that there is no risk, one can assume that if an amount is invested in order to receive a stream of benefits in the future, all those future benefits are certain to arrive. This is problematic because the purpose of the analysis is basically to enable us to distinguish among projects. If the world were to entail no risk, this must mean that all the future cash flows would be known with certainty. Then so far, no investment opportunity could be any better…
Read MoreAnalyzing and Improving Financial Performance
Financial Performance Companies must be able to measure managerial performance if they are to control operations and achieve organizational goals. As companies grow or their activities become more complex, they often attempt to decentralize decision making as much as possible by restructuring into several divisions and treating each as an independent business. The managers of these sub-units or segments are evaluated on the basis of the effectiveness with which they use the assets entrusted to them. Perhaps the most widely used single measure of success of an organization and its sub-units is the rate of return on investment (ROI). A…
Read MoreFinance Budgeting
Finance Budgeting A budget represents a company’s annual financial plan. A comprehensive budget is a formal statement of management’s expectation for sales, expenses, volume and other financial transactions for the coming period. It consists basically of a pro forma income statement, pro forma balance sheet and cash budget. A budget is a tool for both planning and control. At the beginning of the period, the budget is a plan or standard. At the end of the period it serves as a control device by which management can measure its success in achieving the goals outlined in the budget and plan…
Read MoreFinancial Forecasting
Financial Forecasting Financial forecastingis an essential element in planning. It is the basis for budgeting and for estimating future financing requirements. A company can make finance either from internal or external sources. Internal financing refers to cash flow generated by the company’s normal operating activities. External financing on the other hand refers to capital provided by parties outside the company, such as investors and banks. Companies can estimate their need for external financing by forecasting future sales and related expenses. There are various techniques which are used to estimate or forecast the finance requirements. The Percent-of-Sales method for Financial forecasting…
Read MoreJava Programming Sample – To calculate the factorial of a number
Java Programming Sample The programming example is about how to calculate the factorial of a number Java Factorial Example This Java Factorial Example shows how to calculate factorial of a given number using Java. public class NumberFactorial { public static void main(String[] args) { int number = 5; /* * Factorial of any number is !n. * For example, factorial of 4 is 4*3*2*1. */ int factorial = number; for(int i =(number - 1); i > 1; i--) { factorial = factorial * i; } System.out.println("Factorial of a number is " + factorial); } } /* Output of the Factorial…
Read MoreJava Example to find the area of a circle
Java Programming Example The Java programming example is to find the area of a circle Calculate Circle Area using Java Example This Calculate Circle Area using Java Example shows how to calculate area of circle using it's radius. import java.io.BufferedReader; import java.io.IOException; import java.io.InputStreamReader; public class CalculateCircleAreaExample { public static void main(String[] args) { int radius = 0; System.out.println("Please enter radius of a circle"); try { //get the radius from console BufferedReader br = new BufferedReader(new InputStreamReader(System.in)); radius = Integer.parseInt(br.readLine()); } //if invalid value was entered catch(NumberFormatException ne) { System.out.println("Invalid radius value" + ne); System.exit(0); } catch(IOException ioe) { System.out.println("IO…
Read MoreJava Program Example – To calculate the area of a rectangle.
Java Program Example The example Java program is about how to calculate the area of a rectangle. Calculate Rectangle Area using Java Example This Calculate Rectangle Area using Java Example shows how to calculate area of Rectangle using it's length and width. import java.io.BufferedReader; import java.io.IOException; import java.io.InputStreamReader; public class CalculateRectArea { public static void main(String[] args) { int width = 0; int length = 0; try { //read the length from console BufferedReader br = new BufferedReader(new InputStreamReader(System.in)); System.out.println("Please enter length of a rectangle"); length = Integer.parseInt(br.readLine()); //read the width from console System.out.println("Please enter width of a rectangle"); width…
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