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How do you calculate the circumference of a circle with a radius of 2.250m?
Wiki User
∙ 13y ago
Using this formula: C = r x 2 x Pi:
- 2.25m x 2 x 3.1416 = about 14.14m circumference
Wiki User
∙ 13y ago
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Area of a square is 9000m squared what is the length of a side?
2250m
How deep is the deep zone?
very deep my friend;)
How many km do you run if you run 9 km per hours for 15 minutes?
9km per 60 minutes (1 hour) 9000m (9km) divided by 60 minutes (1 hour) is 150m per minute 150m (per minute) x 15 minutes = 2250m per 15 minutes That gives you 2250m (2.25km) per 15 minutes at 9 km per hour :) +++ Another approach there would have been to use the simple fraction of the hour: just divide 9000metres by 4. (I.e. multiply the distance by the number of hours.) However the you way you used is important by showing the principles of such calculations.
How do you value businesses?
Mainly 4 techniques to value businesses # Net Asset Valuation # Dividend Valuation Model # P/E Ratio (Earnings based) # NPV Net asset valuation simply looks at the net assets on the balance sheet of the company being valued. If the company looking to takeover the business is intending to asset strip it then book values are ignored, instead they use realisable values. Otherwise if a going concern, non-monetary items will be valued at replacement costs & monetary items at book values. For any business this valuation should be used to acertain the minimum value to be paid for the business Dividend Valuation Model is based on the equation below P0 = d0(1+g) / (Ke- g) We know that the share price is simply the present value of the future dividend payments discounted at the cost of equity. The above equation simply uses this where d is the dividend paid now, g is growth rate, Ke is cost of equity (i.e. shareholders expectations - required rate of return) The equation can be re written as P0 = d1 / (Ke- g) as a perpetuity of the future income d1 There are some issues with this model # Assumption of a constant dividend each year # Growth rate consistent & constant # Ke assumed not to change P/E Ratio - Earnings based is dependent on the P/E ratio of the business. The P/E ratio of any business signifies 3 things # Status # Prospects # Risk Price/Earning Ratio = Share Price/EPS where EPS is the earning per share EPS = Earnings/number of ordinary shares The model looks at the product of P/E ratio and earnings for the Business to determine its valuation say for example A Co P/E ratio is 15 & are forecasted earnings are £150m then, Value of A is 15*150 = 2250m This really gives us the market capitalisation of the company Issues - Main issue is whether P/E is reliable & accurate. An under performing business with excellent future prospects will be undervalued using this method Net Present Value is the best method for business valuations. This is the present value of future cash flows discounted at the WACC (hence takes into consideration both the cost of equity & debt)
