vania-janet/multiturn-rag-retrieval-data huggingface dataset:
How you use the metric is super important.   Because it subtracts cash, it does not represent 'value'.  It represents the ongoing financing that will be necessary if both the equity plus debt is bought by one person, who then pays himself a dividend with that free cash.   So if you are Private Equity, this measures your net investment at t=0.5, not the price you pay at t=0.  If you are a retail investor, who a) won't be buying the debt, b) won't have any control over things like tax jurisdictions, c) won't be receiving any cash dividend, etc etc .... the metric is pointless.
Sedar is I guess the Canadian equivalent of EDGAR. You can find the company's filings there.  Here's a picture from their filings. Can't post the link, if you go and find the filing through Sedar you'll know why (it's not as nice a site as EDGAR). The 4.8 million is from unrealized gain on biological assets. So that's what it is. The reason, I think, as to why Operating Income is a positive 2.67 even though Operating Expense and Gross Profit are both negative is because Google Finance backed into Operating Expense. Operating Income is the same between the two sources, it's just the unrealized gain that moves.
Depending on the improvement, you have to amortize or depreciate it over time, which effectively allows you to write off the value over a period of years, even if you pay for it all up front. This messes with cash flow, which is different than profitability, but when you span the write off over five or ten years, the distinction between cash flow and profitability for a private, self funded company is irrelevant. If the money ain't there, the money ain't there. Operating capital is life blood.  Taxes also alter the ROI equation of the investment, since you don't keep all the money you put in.  Way over simplified example: Lets say I close out the year with some arbitrary profit - ten million bucks - in my war chest. 3.5 could go to taxes. I also know that my supplier can't handle my volume for next year while the season is hot, so I'd like to buy inventory in the off season. Last year I sold 6.5 mill worth of stuff from this supplier, but I estimate I could sell 9-10 mill if I didn't have availability problems. If I buy 9-10 mill in inventory, I can't pay taxes. If I pay taxes, I can't buy enough to grow next year.   Sure, COGS is a deductible expense, but the expense isn't realized until the inventory is sold, which won't be until long after these taxes are due.  I now have taxes interfering with my expansion, even though eventually I can write that off.  Now lets look at the manufacturer - sure he could expand his capacity and make more money, but he has to deduct the 5 mill machine he needs over twenty years (or ten or whatever) while the purchase price needs to be made today. This year he's gonna pay tax on 90 or 95% of the money he used to buy that machine, which would eat into the money he needs to buy raw materials to fill orders he already has.  Of course, the real world is much more complicated, and you can leverage leasing agreements and purchasing terms to alleviate this to some extent, but I wanted to illustrate a point. I hope my extremely simplified example communicated what I mean.  Does that make sense?
"For the first and last questions, I can do this multiple ways. For the middle question, I'll just make up values. If you want different ones, you will have to redo the math. I am going to assume that you participate in the merger exchange, swapping your share for their offer. If you own one share, it depends how they handle fractional shares. Your original one share of ABC can be worth either one share of XYZ or 1.05 shares of XYZ. If you get one share, you typically get an additional $.80 cash to make up for the fractional share. You might ask why you don't just get $20 cash and one share of XYZ. Consider the case where you own twenty shares of ABC. Then you'd own twenty-one shares of XYZ and $384. No need for fractional shares. Beyond all this though, the share value of XYZ is not set autocratically. The shares might be worth $16, $40, or $2 after the merger. If both stocks are perfectly valued and the market is aware of that value, then it will depend partially on the number of shares of each. For example, if we assume there are 10,000 shares of ABC and 50,000 shares of XYZ (including the shares paid for ABC), then their initial market values are $320,000 for ABC and $800,000 for XYZ. XYZ is paying $360,000, so its value drops to $440,000. But it is gaining ABC, which is worth $320,000. Net value now is $760,000 or $15.20 per share. This has assumed that the shares transferred from XYZ to the shareholders of ABC were already included in the market value. This may mean that the stock price was previously $20 or so with almost 40,000 shares in circulation. Then they issued new shares, diluting the value down to $16. We could start at 50,000 shares at $16 and end up with 60,000 to 60,050 shares at $13.332 to $13.333 per share.
With the formula you are using you assume that the issued bond (bond A) is a perpetual. Given the provided information, you can't really do more than this, it's only an approximation.  The difference could be explained by the repayment of the principal (which is not the case with a perpetual). I guess the author has calculated the bond value with principal repayment.  You can get more insight in the calculation from the excel provided at this website: http://breakingdownfinance.com/finance-topics/bond-valuation/fixed-rate-bond-valuation/
I use a spreadsheet for that.   I provide house value, land value, closing/fix-up costs, mortgage rate and years, tax bracket, city tax rate, insurance cost, and rental income.  Sections of the spreadsheet compute (in obvious ways) the values used for the following tables:  First I look at monthly cash flow (earnings/costs) and here are the columns:   Next section looks at changes in taxable reported income caused by the house,  And this too is monthly, even though it'll be x12 when you write your 1040.   The third table is shows the monthly cash flow, forgetting about maintenance and assuming you adjust your quarterlies or paycheck exemptions to come out even: Maintenance is so much of a wildcard that I don't attempt to include it.  My last table looks at paper (non-cash) equity gains:  I was asked how I compute some of those intermediate values.  My user inputs (adjusted for each property) are:  My intermediate values are:
ROI and volatility should be calculated over a representative period of time, for example 3 or 5 years, depending on data availability.  The ROI is simple, for example, over 5 years:- For the 5 year annualised volatility you can refer to the ESMA SRRI methodology. Box 1 (page 3)  m is the annualisation factor. Stock volatility calculated from weekly data should not be compared with volatility calculated from monthly data. Also, for reference: How to Calculate your Portfolio's Rate of Return
Setting up a hedge ratio: h = Vs*(u-d)/(Vcu-Vcd) h = 70*(1.076923077-0.928571429)/(15.38-5) = 1 That means we have to write (sell) 1 option for each share purchased in order to hedge the risks. You can make a simple calculation to check this, but I'm not going to go into too much detail here as the equestion is not about hedging. Because this position is risk-free in equilibrium it should pay a risk-free rate (5.5%). Then, the formula to price an option (Vc) using the hedging approach is: (Vs-hVc)(e^(rt))=(Vsu-hVcu) Where (Vc) is the value of the call option, (h) is the hedge ratio, (Vs) - Current Share Price, (Vsu) - highest probable share price, (r) - risk-free rate, (t) - time in years, (Vcu) - value of a call option on maturity at the highest probable share price. Therefore solving for (Vc): (70-1*Vc)(e^(0.055*(12/12))) = (75.38-1*15.38) => (70-Vc)*1.056540615 = 60 => 70-Vc = 60/1.056540615 => Vc = 70 - (60/1.056540615) Which is similar to the formula given in your textbook, so I must assume that using 1+r would be simply a very close approximation of the formula above. Then it is easy to find that Vc = 13.2108911402 ~ $13.21 2. Risk-neutral valuation: Another way to calculate (Vc) is using a risk-neutral approach. We first introduce a variable (p) which is a risk-neutral probability of an increase in share price.
If the company's ownership is structured similarly to a typical start-up then an 1% employee ownership in a company which sells for 1 million will yield far less than 10k due to various liquidation preferences of the investors, different share classes, etc.  It's pretty hard to get a specific number because it depends a lot on the details of earlier fundraising and stock grants.    That said, unless the company is circling the drain and the sale was just to avoid BK, the share price you get should be higher unless the share class structure and acquisition deal are completely unfair.
"That's not very correct math. It should be "" +household savings -spending + business savings -spending + imports -exports + government surplus -deficit = 0"" And then it seems like comparing oranges with apples?  How can you compare savings, spending and surplus of various instances?  If it would be + income - expense it would be more understandable. Then it's just about money, not about value.  It's possible to circulate a fixed amount of money around to various instances. If those instances are doing valuable favors to each other while circulating money, they generate wealth. However it's better to assign more money into the system to represent added value in the system. Price of money usually is something like ""total value in the system/amount of money in the system"". If you just add money, you can't add value."
But if X[N-3] = S+2 then there's an expected value E[Y] of (3+1.25)/2 = 2.125 if you wait until tomorrow, vs. exercising it now with a value of 2; if X[N-3] = S+1 then E[Y] = (2+0.5)/2 = 1.25, vs. exercise value of 1; if X[N-3] = S then E[Y] = (1+0.5)/2 = 0.75 vs. exercise value of 0; if X[N-3] = S-1 then E[Y] = (0.5 + 0)/2 = 0.25, vs. exercise value of 0; if X[N-3] = S-2 then E[Y] = (0.25 + 0)/2 = 0.125, vs. exercise value of 0. (In all 5 cases, wait until tomorrow.) You can keep this up; the recursion formula is E[Y]|X[k]=S+d = {(E[Y]|X[k+1]=S+d+1)/2 + (E[Y]|X[k+1]=S+d-1) for N-k > d > -(N-k), when you should wait and see} or {0 for d <= -(N-k), when it doesn't matter and the option is worthless} or {d for d >= N-k, when you should exercise the option now}. The market value of the option on day #k should be the same as the expected value to someone who can either exercise it or wait. It should be possible to show that the expected value of an American option on X is greater than the expected value of a European option on X. The intuitive reason is that if the option is in the money by a large enough amount that it is not possible to be out of the money, the option should be exercised early (or sold), something a European option doesn't allow, whereas if it is nearly at the money, the option should be held, whereas if it is out of the money by a large enough amount that it is not possible to be in the money, the option is definitely worthless.
What you're referring to is the yield.  The issue with these sorts of calculations is that the dividend isn't guaranteed until it's declared.  It may have paid the quarterly dividend like clockwork for the last decade, that does not guarantee it will pay this quarter.   Regarding question number 2.  Yield is generally an after the fact calculation.  Dividends are paid out of current or retained earnings.  If the company becomes hot and the stock price doubles, but earnings are relatively similar, the dividend will not be doubled to maintain the prior yield; the yield will instead be halved because the dividend per share was made more expensive to attain due to the increased share price.   As for the calculation, obviously your yield will likely vary from the yield published on services like Google and Yahoo finance.  The variation is strictly based on the price you paid for the share.  Dividend per share is a declared amount.  Assuming a $10 share paying a quarterly dividend of $0.25 your yield is: Now figure that you paid $8.75 for the share. Now the way dividends are allocated to shareholders depends on dates published when the dividend is declared.  The day you purchase the share, the day your transaction clears etc are all vital to being paid a particular dividend.  Here's a link to the SEC with related information: https://www.sec.gov/answers/dividen.htm I suppose it goes without saying but, historical dividend payments should not be your sole evaluation criteria.  Personally, I would be extremely wary of a company paying a 40% dividend ($1 quarterly dividend on a $10 stock), it's very possible that in your example bar corp is a more sound investment. Additionally, this has really nothing to do with P/E (price/earnings) ratios.
"The dow jones is an index of 30 stocks that's weighted based on the price per share of these stocks. To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a divisor, the Dow Divisor. The divisor is adjusted in case of stock splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA.  Prices are the result of supply and demand. Demand is defined as simply as ""I want this badly enough to pay cash for it"", ""supply is ""I own this and don't want to own it, therefore I'll sell it""  When investors go about deciding they'd like to buy some stock from people who own it and are wanting to sell it, a market is generated and a price both are willing to sell/buy at is found. If the price is too high/low, you won't sell or buy. The price has to be ""right"" based on your own personal valuation.   Since these trades are done through an exchange and are so common, literally millions of shares are traded per day, you get the best price available at that moment for your shares. If person A is only willing to give you 100 dollars and person B is willing to give you 100.01, screw person A. I'm selling shares to person B.  When this done on a macro-level (millions of shares traded per day) the exchanges will track and make public the ""price movement"" of what the market is willing to give for each and every publicly traded stock.  TLDR: SUPPLY AND DEMAND. DOW USES THEIR OWN METHODS."
What I know about small companies and companies who are not listed on the stock markets is this: If a small company has shares issued to different people either within an organization or outside the value of the shares is generally decided by the individual who wants to sell the share and the buyer who wants to buy it. Suppose my company issued 10 shares to you for your help in the organization. Now you need money and you want to sell it. You can offer it at any price you want to to the buyer. If the buyer accepts your offer thats the price you get. So the price of the share is determined by the price a buyer is willing to buy it at from you. Remember the Face value of the shares remains the same no matter what price you sell it for. Now annual profit distribution is again something called dividends. Suppose my company has 100 shares in total out of which I have given you 10. This means you are a 10% owner of the company and you will be entitled to 10% of the net profit the company makes. Now at the end of the year suppose my company makes a 12,000 USD net profit. Now a panel called board of directors which is appointed by share holders will decide on how much profit to keep within the company for future business and how much to distribute about share holders. Suppose they decide to keep 2000 and distribute 10,000 out of total profit. Since you own 10% shares of the company you get 1000. The softwares you are talking are accounting softwares. You can do everything with those softwares. After-all a company is only about profit and loss statements.
All shares of the same class are considered equal. Each class of shares may have a different preference in order of repayment.  After all company liabilities have been paid off [including bank debt, wages owing, taxes outstanding, etc etc.], the remaining cash value in a company is distributed to the shareholders. In general, there are 2 types of shares: Preferred shares, and Common shares.  Preferred shares generally have 3 characteristics: (1) they get a stated dividend rate every year, sometimes regardless of company performance; (2) they get paid out first on liquidation; and (3) they can only receive their stated value on liquidation - that is, $1M of preferred shares will be redeemed for at most $1M on liquidation, assuming the corporation has at least that much cash left. Common Shares generally have 4 characteristics: (1) their dividends are not guaranteed (or may be based on a calculation relative to company performance), (2) they can vote for members of the Board of Directors who ultimately hire the CEO and make similar high level business decisions; (3) they get paid last on liquidation; and (4) they get all value remaining in the company once everyone else has been paid. So it is not the order of share subscription that matters, it is the class. Once you know how much each class gets, based on the terms listed in that share subscription, you simply divide the total class payout by number of shares, and pay that much for each share a person holds. For companies organized other-than as corporations, ie: partnerships, the calculation of who-gets-what will be both simpler and more complex. Simpler in that, generally speaking, a partnership interest cannot be of a different 'class', like shares can, meaning all partners are equal relative to the size of their partnership interest. More complex in that, if the initiation of the company was done in an informal way, it could easily become a legal fight as to who contributed what to the company.
"I think it's easiest to illustrate it with an example... if you've already read any of the definitions out there, then you know what it means, but just don't understand what it means. So, we have an ice cream shop. We started it as partners, and now you and I each own 50% of the company. It's doing so well that we decide to take it public. That means that we will be giving up some of our ownership in return for a chance to own a smaller portion of a bigger thing. With the money that we raise from selling stocks, we're going to open up two more stores. So, without getting into too much of the nitty gritty accounting that would turn this into a valuation question, let's say we are going to put 30% of the company up for sale with these stocks, leaving you and me with 35% each. We file with the SEC saying we're splitting up the company ownership with 100,000 shares, and so you and I each have 35,000 shares and we sell 30,000 to investors. Then, and this depends on the state in the US where you're registering your publicly traded corporation, those shares must be assigned a par value that a shareholder can redeem the shares at. Many corporations will use $1 or 10 cents or something nominal. And we go and find investors who will actually pay us $5 per share for our ice cream shop business. We receive $150,000 in new capital. But when we record that in our accounting, $5 in total capital per share was contributed by investors to the business and is recorded as shareholder's equity. $1 per share (totalling $30,000) goes towards actual shares outstanding, and $4 per share (totalling $120,000) goes towards capital surplus. These amounts will not change unless we issue new stocks. The share prices on the open market can fluctuate, but we rarely would adjust these. Edit: I couldn't see the table before.
Damn, helpful Harry above me.   So, in general, when compounding the value of an investment, if you're seeing an annualized interest rate of 4%, and the interest compounds monthly (or n number of times per year), you're going to multiply the Principal P by the growth rate (the interest rate), adjusted for the number of periods that your investment grows in a year. P_end = P * (1 + 0.04/n)^(n * t), where n = number of periods, and t = number of years. If the interest compounds annually, you earn P *(1.04), if it compounds monthly, you earn (1 + 0.04/12)^(12 * 1).   Apply this logic to discounting future cash flows to their net present value. When discounting future cash flows, you're essentially determing the opportunity cost of now being unable to put your investment elsewhere and earning that corresponding interest (discount) rate.   Thus, you would discount $1000 by (1 + 0.08/12)^1, and $2000, $3000 in a similar fashion. Then, as icing on the cake, sum up to get your cumulative net present value.  Please let me know if any portion of my explanation is unclear; I would be happy to elaborate!
Shareholder's Equity consists of two main things: The initial capitalization of the company (when the shares were first sold, plus extra share issues) and retained earnings, which is the amount of money the company has made over and above capitalization, which has not been re-distributed back to shareholders. So yes, it is the firm's total equity financing-- the initial capitalization is the equity that was put into the company when it was founded plus subsequent increases in equity due to share issues, and retained earnings is the increase in equity that has occurred since then which has not yet been re-distributed to shareholders (though it belongs to them, as the residual claimants). Both accounts are credited when they increase, because they represent an increase in cash, that is debited, so in order to make credits = debits they must be credits. (It doesn't mean that the company has that much cash on hand, as the cash will likely be re-invested). Shareholder's Equity is neither an asset nor a liability: it is used to purchase assets and to reduce liabilities, and is simply a measure of assets minus liabilities that is necessary to make the accounting equation balance: Since the book value of stocks doesn't change that often (because it represents the price the company sold it for, not the current value on the stock market, and would therefore only change when there were new share issues), almost all changes in total assets or in total liabilities are reflected in Retained Earnings.
You have to look at the real price of the share to calculate the value of the spread. 42$ at the start, 46$ at the end.  Think of it this way: When price was 42$ the call 45$ was out of the money, worth 100$ of time value only=100 the call 40$ was in the money and worth 200$ of intrinsic + 100 time value=300 the difference was 200$ Now that price is 46$ the call 45$ is worth 100$ in the money, real or intrinsic value the call 40$ is worth 600$ in the money, real or intrinsic value the difference is 500$ NOTE: 1. Commission fees are not included. 2. Time value of 100$ on both calls when price is 42$ is incorrect and for teaching purpose only.
This answer is based to the book Fundamentals and Techniques of Financial Management and where you can found the explanation of Value of Money in Time.  Referencies: Braga, Roberto, 1937 - Fundamentos e Técnicas de administração financeira/Roberto Braga.- 1.ed - 23.reimpr. -São Paulo : Atlas, 2015. In the Financial Math deals with:  Currency - Corresponding to payments and / or receipts of a transaction Time - Regarding the period between the date of the operation and the periods in which payments or receipts should occur Interest - Regarding the remuneration due for the use of the money during the term of the operation. is very interesting to buy this book --- http://p.pw/baj8W6 --- or searching in LojasMarques.com
/ in relative to the Tesla's performance, and current inflation.  They can split and reverse split at anytime the board decides without any regard to inflation or performance.   OP points to Tesla at 350- he doesn't point to PE. It makes no differences what the price of one share is. If they split 10 for 1 it would be 35- but what difference does that make- the PE remains the same. OP does not understand value- only price.