Now that all of you have graduated with honors from the School of Financial Nuggets, it is time to let the inmates run the asylum. This thread will be your opportunity to pose investment-related questions that you have always wondered about. Let me get y’all started with the first question.
If the price per share for a stock is Rs 100 and # of shares outstanding is 10 million, what is the market capitalization of the said stock?
Everyone is invited to provide answers. Also, everyone can pose questions they have.
Re: Interactive thread on investment-related questions
Correct!
Let us assume the company bought some equiment 8 years ago worth Rs 200000. Let us assume company depreciates this equipment over 20 years at rate of 10000 per year. This amount is deducted from profits when net income is calculated.
Assume each year company amortizes Rs 5000 in goodwill. The intersect paid on debt each year is Rs 2000. Income taxes Rs 8000.
What is operating income?
What is operating cash flow?
Looks like we have an investment guru here folks in the form of Ali.
Re: Interactive thread on investment-related questions
Correct!
Let us assume the company bought some equiment 8 years ago worth Rs 200000. Let us assume company depreciates this equipment over 20 years at rate of 10000 per year. This amount is deducted from profits when net income is calculated. What is the company's operating cash flow (assuming there are no other non cash items that affect net income).
Ali - at this stage I am drawing a blank for difference between operating and net income. Be glad to correct this question per your inpur).
Looks like we have an investment guru here folks.
the information is incomplete for calculating OCF. with this info we can reach to CF before WC changes (unless company is using cash based accounting and not the Accrual based )
