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The concept of equity applies to individual people as much as it does to businesses. We all have our own personal net worth, and a variety of assets and liabilities we can use to calculate our net worth. Common examples of personal assets include: 1.       Cash 2.       Real estate 3.       Investments 4.       Furniture and household items 5.       Cars and other vehicles Common examples of personal liabilities include: 1.       Credit card debt 2.       Lines of credit 3.       Outstanding bills (phone, electric, water, etc.) 4.       Student loans 5.       Mortgages The difference between all your assets and all your liabilities is your personal net worth. Example in Excel Let’s look at an example of two different approaches in Excel. The first is the accounting approach, which determines the book value, and the second is the finance approach, which estimates the market value.    

    A 3 statement model links the income statement, balance sheet, and cash flow statement into one dynamically connected financial model.  3 statement models are the foundation on which more advanced financial models are built, such as discounted cash flow (DCF) models, merger models, leveraged buyout (LBO) models, and various other types of financial models. There are two common approaches to structuring a 3 statement model: single worksheet and multi-worksheet. While both approaches are acceptable, CFI strongly recommends using a single worksheet structure (with grouping), for several reasons that are outlined below. Advantages of a single worksheet model includes the following: •    Easier to navigate (don’t have to switch between tabs) •    Less risk of mis-linking formulas (all time periods are in the same column) •    More organized with the use of grouping cells •    Allow more room for consolidating multi-business companies There are several steps required to build a three sta

In the discounted cash flow approach, an analyst will forecast all future free cash flow for a business and discount it back to the present value using a discount rate (such as the weighted average cost of capital). DCF valuation is a very detailed form of valuation and requires access to significant amounts of company information. It is also the most heavily relied on approach, as it incorporates all aspects of a business and is, therefore, considered the most accurate and complete measure. A DCF model is a specific type of financial modeling tool used to value a business. DCF stands for Discounted Cash Flow, so a DCF model is simply a forecast of a company’s unlevered free cash flow discounted back to today’s value, which is called the Net Present Value (NPV). Even though the concept is simple, there is quite a bit of technical background knowledge required for each of the components mentioned above, so let’s break each of them down in further detail. The basic building block of a DC

In finance and accounting, equity is the value attributable to the owners of a business. The book value of equity is calculated as the difference between assets and liabilities on the company’s balance sheet, while the market value of equity is based on the current share price (if public) or a value that is determined by investors or valuation professionals. The account may also be called shareholders/owners/stockholders equity or net worth. There are generally two types of equity value: 1.    Book value 2.    Market value Book value of equity In accounting, equity is always listed at its book value. This is the value that accountants determine by preparing financial statements and the balance sheet equation that states: assets = liabilities + equity. The equation can be rearranged to: equity = assets – liabilities. The value of a company’s assets is the sum of each current and non-current asset on the balance sheet. The main asset accounts include cash, accounts receivable, inventory,

 Marketing campaigns promote products through different types of media, such as television, radio, print, and online platforms. Campaigns are not solely reliant on advertising and can include demonstrations, video conferencing, and other interactive techniques. Businesses operating in highly competitive markets and franchisees may initiate frequent marketing campaigns and devote significant resources to generating brand awareness and sales. Marketing campaigns can be designed with different goals in mind, including building a brand image, introducing a new product, increasing sales of a product already on the market, or even reducing the impact of negative news. Defining a campaign's goal usually dictates how much marketing is needed and what media are most effective for reaching a specific segment of the population. There are many ways to market products and services to customers, from mailing brochures to coordinating a social media blitz. Small companies can email invitations to