Here We address the queries that are regularly raised by the students. You must have seen through our videos the queries that we are going to address here are related to the numerical questions. 

In numerical questions, students feel that if we know the formulas like ratio analysis then we know the formula of ROE, ROCE, calculations like dividend yield, earning yield, etc.

If we know some formula then it is possible that we will clear our exam.  

I personally don't believe in this thing, as an educator I always feel that your concepts should be clear. If concepts are clear, then your vertical reading balance sheet or vertical profit & loss account means if you know how to read your financial statements well, then I don't think you need formulas.

They will automatically reflect in your mind. They will be reflected in a way that means you should have this level of understanding for that too, but yes, reading financial statement is going to be a base for any ratio analysis question. 

That means numerical questions, so in this article we'll cover formula based questions and also learning formulas in this series. 

In demand we need formula based questions so we are making it but still I will say certain questions are they like this or many questions for that matter is such where the combination of formula. There is a requirement So you will just memorize the formula and with that Questions will be solved I am a little Skeptical about it but okay if you want me to cover formula based questions.

Market cap = Price of a stock x Total number of outstanding shares

A company has 10 lakh outstanding shares, and the current market price of one share is ₹250. What is the company's market capitalization? Options: ₹20 crore ₹25 crore ₹30 crore ₹15 crore

EPS = NET PROFIT TOTAL OUTSTANDING SHARES

A company reports a net profit of ₹50 crore, and the total number of outstanding shares is 10 crore. What is the company's Earnings Per Share(EPS)?

Options:A) ₹5B) ₹10C) ₹2D) ₹7

DPS = NET DIVIDEND PAID / TOTAL OUTSTANDING SHARES

A company declares a total dividend payout of ₹5,00,000. The total number of outstanding shares is 2,50,000. 

Calculate the Dividend Per Share (DPS).(a) ₹1(b) ₹2(c) ₹1.5(d) ₹2.5

P/S RATIO = CMP/ANNUAL NET SALES PER SHARE

P/S RATIO = MARKET CAP/ANNUAL NET SALES

EV = Value of common equity + value of non-controlling interest +Value of preferred capital + Debt - cash, cash equivalents, and financial investments.

A company has the following financial details:

• Value of Common Equity = ₹ 50,00,000
• Value of Non-Controlling Interest = ₹5,00,000
• Value of Preferred Capital = ₹8,00,000
• Total Debt = ₹20,00,000
• Cash, Cash Equivalents & Financial Investments = ₹10,00,000

Total book value = 10 crore + 6 crore + 1 crore = 17 crore