Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Present Value of Uneven Periodic Sum - DCF Technique
As in investment decisions it is very rare to acquire even periodic returns and in most cases a company will generate a stream of uneven cash inflows from a venture and so the current value of those types of uneven periodic sums is equivalent to as:
Pv = A1 / (1+k)1 + A2 / (1+K)2 +A3/(1+K)3 + ..... +AN / (1+K) N
Equation is as:
Whereof: At = Uneven cash inflows at time t
Pv = current value
K =Cost of finance
A company contemplates to receive Shs.:
20,000 in year 1
18,000 in year 2
24,000 in year 3
Nil in year 4
40,000 in year 5
Cost of this finance is 12percent
Required
Calculate present value of that finance
Solution
Pv = 30,000 (1+12)1 + 18,000 / (1+12)2 +24,000/(1+12)3 + 40,000 / (1.12)5
= 80,915.004
Define the term Placement - Methods of Floating New Issues Under this method, issue houses or brokers purchase the securities outright with the intention of placing them wi
Collection Policy The firm's collection policy may affect also our study. The higher the cost of collecting accounts obtainable the lower the bad debt losses. Therefore the
Before purchasing insurance we have to go through different factors. Among different important factors there are two most crucial aspects we should consider before buying insurance
what makes a preference shares a hybrid?
Importance and Solution of Dividend Decisions Dividends decisions are integral part of a firm's strategic financing decision. It is hence a plan of action adopted by managemen
Example of Capital Asset Pricing Model KK Ltd is an all equity firm whose Beta factor is 1.2, the interest rate on T. bills is currently at 8.5% and the market rate of return
Underwriting - Stock Market 1. This is the supposition of risk relating unsubscribed shares 2. When new shares are issued, they might be beneath -written or unsubscribed. A
Why do several critics say the CAPM model is not suitable in an international setting? Please describe a way that the CAPM model could be adapted for international applications.
Internal finance can avoid the agency costs of debt and equity finance. In practice it is the most important source of funding. (a) Discuss potential problems of internal finan
thew amount of money investedin a retirement fund is an example of
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd