Finance Numericals

Sustainable Growth Rate: It shows the maximum growth rate a company can achieve without increasing or changing the debt and asset amount. It can be negative or positive. The negative rate shows that the company must improve its debt equity ratio or you can say that the company have to increase its debt and assets amount.   A higher growth rate is better for the company. If company wants to increase the growth rate then they have to increase their debt and assets amount. Formula: Sustainable Growth R ate (SGR) = Retention rate* Return on equity rate Retention rate: The rate of profit that reinvested in a company for company’s future growth is known as retention rate. Company pays dividend to its shareholders out of profit. It reinvested the remaining amount left after paying dividend to its shareholders for further expansion of a company. Higher rate shows more amounts are reinvested in a company in comparison to the amount pays to its shareholders. And the lower rate shows...

To differentiate between bullish and bearish market first of all we need to know what is bearish and bullish means? These two terms are market conditions under which securities, options and contracts etc are traded. Bullish means the price of the stock increases or assumes to be increases in near future. And the bearish means the price of stock or value of security is decreases or assumes to be decreases in near future. The investors act differently in bullish and bearish market to earn profit from the available market condition. The open interest is also used to analyse the market conditions are bearish or bullish. Open interest is the number of derivatives contracts are not settled in the end of a trading day. Let’s find out the difference between Bullish and Bearish market conditions :- S.No. Point of difference Bullish Bearish 1 What is the meaning of bullish and bearish? The asset value or stock prices assum...