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The excessive frequency of compounding is generally continuous compounding where the interest is compounded immediately. The data for continuous compounding for one year is eAPR here e is 2.71828 that is the base of the natural logarithm. So the future value of an amount which is compounded for n years is:
FV = PV x ekn
Here k is annual percentage rate and ekn is the compound factor.
How is a company’s cost of capital affected by its tax rate?
Shareholder value maximization framework The four key elements that affect the shareholder value of a company are Profitability Growth Risk Capital Mark
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