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Future Value
The value of an investment is based on the rate of interest paid at set time periods and at some point in the future. Future values incorporate both the income rate of interest and the amount of interest compounded on interest already earned. Interest may be compounded in annually, monthly, weekly or even daily. The more frequently profit is compounded, the higher the future value of the investment.
Q. Example on Walters dividend model? Example: - The following information is obtainable in respect of a firm: Capitalisation Rate (Ke) = 10% Earning
FINANCIAL MANAGEMENT
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