Fundamental Analysis Videos

The speaker discusses how to calculate the retained earnings of a company who has made an acquisition.  The simple way to determine this is to take the RE balance of the parent company and add the difference of the prior period retained earnings balance and the current period retained earnings balance. 

The speaker discusses the definition of the weighted average cost of capital (WACC).  He then covers how the WACC is calculated and mentions that it represents a blended cost of capital from all sources of funds; bonds, equity, preferred stocks, etc.  He walks through a simple example and illustrates how to calculate WACC. 

The speaker does a quick overview on the differences between stock price and market capitalization.  Stock price is not an accurate measure of a companies size, market cap is.  A stock might be priced very high but there may not be many shares outstanding which would render the value of the entire company very low.  Conversely, a low priced stock may have a very high number of shares in float which would render a large market capitalization.