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What is a sunk cost? Is it relevant while evaluating a proposed capital budgeting project? Explain.
A sunk cost is a cash flow which has previously occurred, or that will take place, if a project is accepted or rejected. It is not relevant while evaluating a proposed project.
What are number of factors that influence the shape of the yield curve? There are some of factors which influence the shape of the yield curve as follows: (1) Expectations
Explain how exchange rate fluctuations influence the return from a foreign market measured in dollar terms. Discuss the empirical proof on the effect of exchange rate doubt on the
Shareholders' wealth maximization Shareholders' wealth maximization refers to maximization of the net present value of every decision made in the firm. Total present value is e
a recent business school graduate, you work directly for the corporate treasurer. Your corporation is going to issue a new security plan and is concerned with the probable flotatio
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What does an investment banker do when underwriting a new security issue for a corporation? While underwriting a new security issue an investment banker buys it and after that re
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