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Hameed Yakoob offers(ONLINE)Lessons in Cfa,cima,cpa,cma

Hameed Yakoob offers(ONLINE)Lessons in Cfa,cima,cpa,cma

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This Page is created by Hameed Yakoob, from Karachi, Pakistan. CONTACT:
Cell # (+92)333-2398085
Sky

PROFILE PAGE:
http://pk.linkedin.com/pub/hameed-yakoob-teaches-online-acca-classes/19/56b/b9

HAMEED YAKOOB teaches (online) Acca,fia,cima Classes (Skype: acca.classes)

HAMEED YAKOOB teaches (ONLNE) Financial Management

HAMEED YAKOOB teaches (ONLINE) O/A (Accounts)



HAMEED YAKOOB:
from Karachi, Pakistan, is Accounts & Finance Faculty, of TOP/Leading Business Schools & Universities, in Teaching

12/05/2014

(CFA Level 1) (CIMA F3) (ACCA F9) (ACCA P4)

HOW to determine the INTRINSIC VALUE of a share of Common Stock?

Intrinsic Value of a Share of Common Stock is based on it’s Risk & Return.
Following THREE steps are involved:
(a)Forecasting of the Future stream of Dividends, which the Share (of Commom Stock) is expected to provide to the holder.
(b) Determining the Required Rate of Return(RRR) for the Stock, depending on the Risk of the Stock. This is determined by applying the CAPM model. This RRR is used as the Discount Rate for finding the Present Value of Future Stream of Dividends.
(c) Finding the Present value of Future Stream of Dividends using RRR as Discount Rate (as in Step # TWO)

The Present Value of Future Stream of Dividends is the INTRINSIC/True/Economic Value of the Share of Common Stock.

(ABOUT the author: Hameed Yakoob is Accounts & Finance Faculty, in (Online) Teaching & Training for the last 18 years(Skype:hameed.yakoob1)

06/04/2014

(CFA Level 1) (CIMA F3) (ACCA F9) (ACCA P4)

HOW DOES a CHANGE in CAPITAL STRUCTURE AFFECT a FIRM’s VALUE?

Capital structure theory deals with the mixture of debt,preferred stock, and equity, a firm utilizes.Since interest on debt financing is a tax-deductible expense, and because lenders demand a lower rate of return than do stockholders for a company(because lending money is not as risky as owning shares), debt capital SEEMS cheaper than equity capital.However, the more a company borrows, the more it increases its Financial Leverage & Financial Risk.

The additional risk causes lenders and stockholders to demand a higher rate of return.

Hence the choice of capital structure involves a trade-off between the tax advantages of borrowing, and the costs of financial distress, to maximize firm’s value.

Financial Managers use capital structure theory to help determine the mix of debt & equity at which the weighted average cost of capital is lowest.

(ABOUT the author: Hameed Yakoob is Accounts & Finance Faculty, in (Online) Teaching & Training for the last 18 years(Skype:hameed.yakoob1)

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Location

Karachi

Category

Education

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Telephone

+92-333-2398085

Website

Address

Block # 17, Gulshan-e-Iqbal, Near Baitul Mukkarram Mosque & KDA Officers Society
Karachi