Finance Numericals

 Convertible Security: These are securities that convert into common stock with specified time period Convertible securities are convertible bond and convertible preference share. Convertible bond has a facility to convert it to shares. So, the interest rate is low in comparison to non-convertible bond. What is Conversion Ratio? Conversion Ratio: It refers the number of shares a convertible security holder receives after converting its security to shares. Formula: Conversion ratio = P/CP Where, P = Par value of bond CP = Conversion price Conversion Price: It is a price of per shares given to convertible security holder in exchange of shares. Formula: Conversion Price = P/CR Where, P = Par value of bond CR = Conversion Ratio Conversion Value: It is the value of share price an investor receives after converting the bond or preference shares into common shares. Formula: Conversion Value = CR* P s Where, CR = Conversion Ratio P s =Price per Share Con

  What is Moving Average? It is technique use to calculate the overall trend with the help of historical data. To calculate the moving average simply calculates the average of set of data with time period. There are 4 type of Moving Average that is: ·          Simple Moving Average ·          Cumulative Moving Average ·          Weighted Moving Average ·          Exponential Moving Average Example: Find out the simple moving average of following year sales data of XYZ Company by using 3 moving years Year Sales (Rs.) 1 5259 2 6453 3 9845 4 4865 5 3212 6 9856 7 4578 8 5965 Solution: Year Sales (Rs.) Moving Average (for 3 years) Deviation Absolute Deviation Squared deviation Absolute Percentage Error 1