Weighted Average Number Of Common Shares Outstanding Finance Essay - Free Essay Example

Sample details Pages: 4 Words: 1295 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Compare and contrast essay Did you like this example? To begin with, earnings figure is revenues  minus  cost of sales,  operating expenses, and  taxes, over a given  period  of time.  Earnings  are the reason  corporations  exist, and are often the  single  most important determinant of a  stocks  price. Earnings are important to  investors  because they give an indication of the  companys past and  expected  future  dividends  and its potential  for  growth  and  capital appreciation.  However, depending only on the earnings figure to estimate and predict the companys future is problematic. Because, it only shows the exact and real earnings figure in the past, but it is not a 100% accurate guarantee for well-being of the company in the future. Don’t waste time! Our writers will create an original "Weighted Average Number Of Common Shares Outstanding Finance Essay" essay for you Create order There is no guarantee that if this year the company made 10 million profit, in the next year it will make the same or higher profit. Earnings per share and Price-Earnings ratio are two important types of earnings figure that investors will pay much attention when making the investment decision. Earnings per share (EPS) of a business is a portion its profit allocated to each outstanding share of common stock. It tells us the net profitability of a business, and shows the portion of a businesss profit that is allocated to each share of the business. For instance, if you have 1000 shares, the EPS number can show you, what your amount of share of the profit from the business is. In calculating EPS we have to subtract any dividends paid to investors, because that amount of money is distributed among shareholders and investors. We use the formula below to calculate Earnings per Share. Earnings per Share (EPS) = Net Income ? Dividends on Preferred Shares Weighted Average Numb er of Common Shares Outstanding Next, Price-Earnings ratio (P/E) is the most popular method to measure of the cost of a stock and investors use this method widely. Basically, Price-Earnings of a stock shows us how much investors are ready to pay per dollar of earnings. In another words, a P/E ratio of 40 this means that investors in the stock are ready to pay $40 for each $1 of earning that the business generates. We use the formula bellow to calculate P/E ratio: C:UsersHoangAnhDesktopprice-to-earnings-formula.gif Source: https://www.theoptionsguide.com/price-to-earnings-ratio.aspx Generally, a low P/E is defined a sign that a stock may be undervalued or it is expected by investors to have a poor future earnings. On the contrary, a P/E with a high ratio indicates an over-valued stock, or investors expect a significant increase in earnings. The interest fact is that usually investors tend to buy a stock with a low P/E ratio rather buying the one with a high ration, because t hey will get more earning for their money. Earning only tells the story what the company did so far, but not what the company is going to do in the future. Definitely, the past earnings are important; however the potential future earnings figure is also important. This is important as if investors want to invest effectively and profitably, they would like to be sure that the companys earnings will increase in the future or at least wont drop. For example, we need to know if any new product is coming out or not. Like, Apple, it produces new iPhone every 6 months, so it can meet consumers changing demands, therefore the earnings potential will be growing. Another example proving that earnings are the past information of the company and mostly helps to estimate only the company in the past is Nokia Company. In 2009 they were the biggest phone company and had 49% of the market share which is huge; they almost dominated the market and had the huge earning statistics. Who could have t hought that such a successful company with a gigantic earnings figure, in 2012 will have only 8% of market share and the earnings figure has dropped and keeps dropping significantly. This happened because they do not produce many new and innovative products. They kept and keep producing old-fashioned phones with old technologies and do not change the product line to meet the fast changing demand of consumers and trends of the market. Their past earnings figures are still high, however the present earnings figures are very low, and the future figures, apparently will be dropping. That is why the investors do not always estimate the companys future based only on earning figures; they take other factors into consideration. That is why the financial reporting is changing to meet the investors requirements. Changing Financial Reporting Firstly, financial reporting is written records of a businesss financial situation. They include standard reports like the balance sheet, income or profit and loss statements, and cash flow statement. It is one of the most basic components of business information; it helps to communicate to external parties (such as investors, creditors, suppliers and etc.) about financial position of the company. In the past investors based only on financial ratios provided by the company to estimate the companys financial position and its potential growth. However, as mentioned before financial ratio talks only about the past figures, but this may not be repeated in the future. Nowadays, the market is very competitive, the world is a market, you may be in your country market, and companies from other country can come into your market. Hence, to be profitable and competitive you must know more information, besides the financial ratio. Before investing, investors will likely watch the financial ratio and also non-financial statement of the company. They might want to know about information on the state of the economy, industry and competitive considerations, market forces, technological change, and the quality of management and the workforce are not directly reflected in a companys financial statements. One of popular non-financial reporting is SWOT analysis. It examines the strength and weakness, opportunity and thread of the company. SWOT analysis shows to investors the objective of the company or project and identifies the internal and external factors that are favourable and unfavourable to achieve that objective. Strengths: characteristics of the company or team that give it an advantage over others in the industry Weakness: characteristics of the company that put it in disadvantage in comparison to others Opportunities: external chances that allow the company to increase sales or profit Threats: external factors that can cause trouble to the company C:UsersHoangAnhDesktopswot_img2.gif Source: https://zeldor.biz/2011/01/swot-analysis/ Investors will look if the company is using its strengths to take advantage of market opportunities, and if they can identify and work on weakness that might slow down their ability to take advantage of those opportunities. Another important factor that investors are keen to watch closely is how the company is aware of its threads, how they use their strength to eliminate the potential threads or at least manage to minimise them. Additionally, investors also care about if the company can work to define the weakness that may increase the criticality of threats. C:UsersHoangAnhDesktopSWOT-Analysis.jpg Source: https://www.easy-marketing-strategies.com/swot-analysis.html Here is an example of SWOT Analysis, in this case we analysise Apple Company. The smart and experienced investors are likely to analyse the financial statements and also will use other non-financial statements, such as this SWOT analysis into consideration before making a decision about whether they should invest in Apple company or not. Conclusion In this assignment we have defined 3 parts of financial statements and its importance as a source of information for investors. Additionally, we have discussed two types of performance measures that investors pay much of attention to makes investment decisions: Traditional methods and Modern Approaches. In the last part we investigated why emphasizing only on earnings figures are problematic and discussed how financial reporting is changing to meet investors requirements, providing an example of non-financial reporting SWOT Analysis.

Everyday Life Is Shaped By One Force - 1706 Words

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Judiasm Essay Example For Students

Judiasm Essay Judaism was a parent of Christianity, and we probably know moreabout it than any other religion, excluding our own, right off the top of ourheads. The ancestors of the Jews, called the Israelites, established akingdom in Canaan-the land of Milk and Honey. The Israelites first beganto see themselves in a special relationship with their God at about 1000B.C.E. God had selected them to be a Chosen People. God had offered theChosen People a covenant, or special agreement. In this covenant, theIsraelites promised to worship only God, and in return God promised thempreservation throughout history and the land of Canaan. Canaan was latercalled Judah, Israel, and Palestine. Central to the understanding of the Jewish convenant is theprosperous herdsman who heard and followed Gods call, Abraham. Abraham answered Gods call and led his family from Ur of the Chaldees toCanaan. Abraham mad a son, Isaac, and a grandson Jacob who alsoinherited the convenant. Abraham, Isaac, and Jacob were called thepatriarchs, or the founders of Judiasm. Moses, being one of the great religious leaders in history, Godrevealed his name Yahweh to him. Yahweh means ?to be? in Hebrew. Theevents recorded in Exodus indicate that through Moses a new and deeperunderstanding of God was revealed. The worship of Yahweh was unknownbefore Moses. The Israelites as a whole began to realize that the God ofMoses was a very ?jealous God,? who would not tolerate worship of anyother god. As the book of Exodus opens, we find that the Israelites are slaves inthe land of Egypt. Exodus became the heart and soul of Judaism. Mosesis the key character in Exodus and one of great religious leaders in history. The Exodus story is one that is very touching. The persecution of the Jews in the 1930s was horrible and will beremembered forever. After being crushed in the economic disaster in theGreat Depression and being totally defeated in WWI, the time was perfectfor Hitler to take anti-Semitism, or hatred for Jews-to a whole differentlevel. Jews all over became victims of Hitlers awful laws such as those inPoland, Europe, Hungary, Czechoslovakia, and Germany. It was an awfultime for the Jewish people and in camps all over Germany and Poland Jewswere being murdered by starvation, disease, beating, mutilation, infection,gassing, and burning. Six million Jews, or about one-third of the entireJewish population of the world was completely wiped out. Only fiftythousand Jews remained after the war. The faith of the Jewish people wastested greatly during the Holocaust. The vivid living faith of the Jewish people is shown through theirmant festivals and celebrations throughout the year. Besides the Sabbathobservance, the Jewish year is filled with yearly festivals. They are allbased on the Jewish lunal calendar. Rosh Hashanah, or the Jewish newyear, which is celebrated in October, opens ten ?Days of Awe?. There is acelebration at the beginning and end of the two days. Yom Kippur is the?Day of Atonement?. It is considered the most holy day of the year and isthe closest to repentance. Five days after Yom Kippur, the Feast ofTabernacles, or Sukkoth, is celebrated. This is a week long feast in the fallcelebrating Gods presence when the Israelites were in the desert. TheRejoicing of the Torah closes the Sukkoth. Hanukkah is the Festival ofLights and is celebrated in December. It commemorates the restoration ofthe Temple after it was destroyed by the Syrians. Purin celebrates Estherssuccess to find a plot to massacre all Jews in the Persian Empire. One of the most important spring holy days is Pesach, or the Passover. There aremany special foods associated with this holiday, especially those served atthe seder (ceremonial meal). Fifty days after the Seder, the feast of thePentecost which remembers the giving of the Law of Moses fifty days afterthe Passover. The Jewish calendar year is filled with many feasts andspecial ceremonies. .ufe453fa616a0deacdad8eb75a5570fb0 , .ufe453fa616a0deacdad8eb75a5570fb0 .postImageUrl , .ufe453fa616a0deacdad8eb75a5570fb0 .centered-text-area { min-height: 80px; position: relative; } .ufe453fa616a0deacdad8eb75a5570fb0 , .ufe453fa616a0deacdad8eb75a5570fb0:hover , .ufe453fa616a0deacdad8eb75a5570fb0:visited , .ufe453fa616a0deacdad8eb75a5570fb0:active { border:0!important; } .ufe453fa616a0deacdad8eb75a5570fb0 .clearfix:after { content: ""; display: table; clear: both; } .ufe453fa616a0deacdad8eb75a5570fb0 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ufe453fa616a0deacdad8eb75a5570fb0:active , .ufe453fa616a0deacdad8eb75a5570fb0:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ufe453fa616a0deacdad8eb75a5570fb0 .centered-text-area { width: 100%; position: relative ; } .ufe453fa616a0deacdad8eb75a5570fb0 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ufe453fa616a0deacdad8eb75a5570fb0 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ufe453fa616a0deacdad8eb75a5570fb0 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ufe453fa616a0deacdad8eb75a5570fb0:hover .ctaButton { background-color: #34495E!important; } .ufe453fa616a0deacdad8eb75a5570fb0 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ufe453fa616a0deacdad8eb75a5570fb0 .ufe453fa616a0deacdad8eb75a5570fb0-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ufe453fa616a0deacdad8eb75a5570fb0:after { content: ""; display: block; clear: both; } READ: GEOLOGY 170 REPORT: EssayThere are three branches of Judaism. Orthodox Judaism is theoldest and largest of the three branches. It has the full tradition ofJudaism. It calls itself the ?Torah-True Judaism? because of its strictadherence to the law of Moses. This stance seems to influence and shapetis approach to theology. The second branch of Judaism is Reform. TheReform branch is extremely liberal and call their houses of worship?temples? and have begun to ordain female rabbis. They believe that theMosaic law should not be followed to closely. The reform Jews still onlybelieve in one God. The last branch of Judaism is the conservative branchwhich lies in the middle of the Orthodox and the reform branches. Theyretain the essentials of Judaism and hold that personal conscience mustbe the final rule of life, and the always try to apply the Jewish tradition tomodern day life. Sometimes the conservative Jews are often timesprofessionals in the arts. Sorry this paper is longer than 500 words Miss. Bolen!! Religion Essays