Hussein

How to Calculate Weighted Average Cost of Capital (WACC)

Weighted Average Cost of Capital (WACC) is an overall rate of return that a company must achieve on its assets (e.g. Plant & Equipment, Goodwill, Cash, Buildings, Accounts Receivable), capital (common & preferred shares) & debt borrowed (bonds & notes pay... Read >

How to Calculate Earnings per Share (EPS)

Earnings per Share is the allocation of a company's net income to each outstanding common share of stock. Earnings per Share is used by Wall Street & other stock market analysts to measure the profitability of a company versus another company in the same ... Read >

What is the Dividend Yield and how do you Calculate it?

A dividend yield is a measure of how much income you should expect to derive relative to the current price of the stock. Another way to look at it is dividend yield is a way of calculating your return on your investment (ROI). The formula for calculating ... Read >

How to Invest in a Dividend ReInvestment Plan (DRIP)

As an income generating investor, you know the importance of stocks that can consistently pay out dividends from their cash flows from operations and still have lots left over to finance their operations, pay their workers' salaries, pay for general & adm... Read >

Four Signs of Dividend Safety

With that being said, not all dividends are safe. In the market right now, you will see companies whose dividend yields are at record highs, something we have not seen in 15 or even 20 years. So how does an investor put the benefit of a steady cash divide... Read >

How to Determine Liquidation Value Method

Liquidation value is the amount of cash that a business can receive for all of its assets including goodwill, property plant & equipment, land, inventory, AR, etc if it were to go out of business tomorrow. For instance, if a business has assets whose fair... Read >

Rules of Investing in a Roth IRA plan

In this section, we look at the general rules that apply to both the traditional IRAs and the Roth IRA. 1) Restricted Transactions You are not allowed to perform all of these following transactions under both the traditional and the Roth IRA. ... Read >

An Investigation in to Roth 401k Rules & Investment Options

Starting December 30th, 2005, the US Treasury Department issued and confirmed the Roth 401k Rules for 401k retirement plan savers. These Rules come into effect starting January 3rd, 2006 and we will look indepth at some of these Roth 401k rules. Requir... Read >