Return on Net Worth By Prof. Simply Simple

Mar 19, 2012

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Return on Net Worth (RONW). It is expressed as:- Net Income RONW = ------------------------------------------- X 100 Shareholder's Equity The numerator is equal to a fiscal year's net income (after payment of preference share dividends but before payment of equity share dividends)The denominator excludes preference shares and considers only the equity shareholding.

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Return on Net Worth By Prof. Simply Simple

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Equity Linked Debentures By Prof. Simply Simple

. So what are ELD's? . An ELD is a form of a fixed income product. It differs from standard fixed-income product as the final payout is also based on the return of the underlying equity, which can be a set of stocks, basket of stocks or an equity index (all pre-defined)It is structured so as to give 100% capital protection with a provision for equity participation.Bonds are rated by an accredited rating agency..

401 views • 12 slides

Understanding Stagflation – By Prof. Simply Simple

Understanding Stagflation – By Prof. Simply Simple. While we are perhaps overexposed to the term “inflation”, it would be interesting to understand the concept of stagflation in this context. In the next few slides let me try and explain the same to you. What is Stagflation?.

348 views • 8 slides

Equity Linked Debentures By Prof. Simply Simple

285 views • 13 slides

Dividend Yield By Prof. Simply Simple

204 views • 10 slides

Understanding Off-Balance Sheets – By Prof. Simply Simple

Understanding Off-Balance Sheets – By Prof. Simply Simple. An Off-Balance Sheet (OBS) usually means an asset or debt or financing activity that is not reflecting on a company's balance sheet.

311 views • 11 slides

Cash Reserve Ratio (CRR) – By Prof. Simply Simple

Cash Reserve Ratio (CRR) – By Prof. Simply Simple. It is a bank regulation that sets the minimum reserves each bank must hold by way of customer deposits and notes These deposits are designed to satisfy cash withdrawal demands of customers

302 views • 7 slides

Understanding Speculative Attacks – By Prof. Simply Simple

Understanding Speculative Attacks – By Prof. Simply Simple.

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Understanding Monetary Policy – By Prof. Simply Simple

Understanding Monetary Policy – By Prof. Simply Simple. The Monetary Policy is the policy statement, announced annually in April, but reviewed four times a year at the end of each quarter, through which the Reserve Bank of India seeks to ensure price stability for the economy.

199 views • 8 slides

Understanding ‘Carry Trade’ – By Prof. Simply Simple TM

Understanding ‘Carry Trade’ – By Prof. Simply Simple TM. Rising interest rates come as bad news for those who wish to take a home loan or a car loan. However, rising interest rates bring several opportunities with them as well….

242 views • 17 slides

Understanding ‘Beta’ – By Prof. Simply Simple TM

Understanding ‘Beta’ – By Prof. Simply Simple TM. We sometimes hear of a commonly used financial term called Beta. But what is it? Let me explain… In finance, the Beta (β) of a stock is a number that tells you the relation of its returns with that of the financial market as a whole.

255 views • 10 slides

Understanding ‘Arbitrage’ – By Prof. Simply Simple TM

Understanding ‘Arbitrage’ – By Prof. Simply Simple TM. Let me tell you a story about a “Chaalu Chaiwala”! He was truly chaalu or shall we say, “Extra Smart”!!. He would provide tea at Rs 5 per cup and his cost of preparing the same was Rs 4. Thus he made a profit of Rs 1. .

379 views • 12 slides

Equity Linked Debentures – By Prof. Simply Simple

Equity Linked Debentures – By Prof. Simply Simple. With the high volatility in the equity markets, investors are increasingly looking at financial products which provide stability along with decent returns. ‘Equity-Linked Debentures’ (or ELDs) are products that provide: Capital protection,

266 views • 13 slides

Return on Net Worth – By Prof. Simply Simple

Return on Net Worth – By Prof. Simply Simple. Return on Net Worth (RONW) is used in finance as a measure of a company’s profitability It reveals how much profit a company generates with the money that the equity shareholders have invested Therefore, it is also called ‘Return on Equity’ (ROE)

261 views • 11 slides

FMP Vs. FD – By Prof. Simply Simple

FMP Vs. FD – By Prof. Simply Simple. A common feature of both FMPs (Fixed Maturity Plans) and FDs (Fixed Deposits) is that investors know in advance how much return they will earn on maturity The difference here is that while the returns on FDs are assured, returns on FMPs are indicative

175 views • 6 slides

American Depository Receipts (ADRs) – By Prof. Simply Simple

American Depository Receipts (ADRs) – By Prof. Simply Simple. ADR is a stock that trades in stock exchanges in the United States. It is a dollar denominated form of equity ownership in a non-US company Each ADR represents a specific number of shares (one or more) in a foreign corporation

402 views • 9 slides

The Prudence of Investing – By Prof. Simply Simple

The Prudence of Investing – By Prof. Simply Simple. Some people put their money in a bank account; some make investments in stocks and bonds. Different people follow different strategies to keep their money on the move.

306 views • 8 slides

Understanding Money Supply – By Prof. Simply Simple

Understanding Money Supply – By Prof. Simply Simple. How is the money supply in the economy regulated? Who governs it? What are its implications on the economy? Let ‘s try and understand ?. Understanding Money Supply. So how is money supply regulated?.

178 views • 11 slides

Return on Capital Employed – By Prof. Simply Simple

Return on Capital Employed – By Prof. Simply Simple. Return on Capital Employed (ROCE) is used in finance as a measure of returns that a company is realizing from its capital employed

327 views • 7 slides

Explaining Fiscal Deficit – By Prof. Simply Simple

Explaining Fiscal Deficit – By Prof. Simply Simple. The government needs money for its huge expenses. We can broadly divide govt. expenses into two types: Revenue expenses Capital expenses .

180 views • 6 slides

Understanding Credit Spreads – By Prof. Simply Simple

Understanding Credit Spreads – By Prof. Simply Simple. A credit spread refers to the difference in interest rates between a corporate bond and a comparable Government bond.

292 views • 11 slides

Time Value of Money – By Prof. Simply Simple

Time Value of Money – By Prof. Simply Simple. Some people put their money in a bank account; some make investments in stocks and bonds. Different people follow different strategies to keep their money on the move.

229 views • 13 slides

Systematic Investment Plan – By Prof. Simply Simple TM

Systematic Investment Plan – By Prof. Simply Simple TM. Making regular investment a habit goes a long way in realising our goals in life SIP should be your first step to investment There are many benefits of investing through SIP

531 views • 35 slides

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