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Q. Show the Compound Value of the Single Flow ?
Compound Value of the Single Flow (Lump Sum):- The process of computing future value becomes very cumbersome if they have to be computed over long maturity periods 10 to 20 years. A generalized process for computing the future value of a single cash flow compounded annually is as follows:
FV = PV (1+i) n
Where FV = Future value of the preliminary flow in n years
PV= Initial Cash flow
i= Annual rate of interest
n = No. of years for which compounding is done.
The capability of an asset to be converted into cash as quickly as possible without any discount to its value.
Define the both cash and share exchange Generally both cash and share exchange are used to make the offer more attractive. Other forms of consideration include: Paper consid
RELATIONSHIP OF FINANCIAL MANAGEMENT WITH OTHER BUSINESS FUNCTIONS
Matching or Accrual The accrual concept makes a distinction among the receipt of cash and the right to receive it, and the payment of cash and legal obligation to pay it.
(a) Prior to FAS 133 if companies qualified for hedge accounting their hedges were assumed to be perfect-no valuation or testing required. Currently under FAS 133 risk managers se
This is again a distinction which becomes important in case of a default. The senior bondholders have to be paid before the subordinate bondholders. This means th
Following are the details relating to three companies which are identical in terms of ''r'' ABC ltd MNC ltd XYZ ltd Cost of capital
Determine the term- Component Cost and Composite Cost A company may contemplate to raise desired amount of funds by different sources comprising preferred stock, debentures and
Question: (a) Give the four main types of financial investments and state the risks and benets associated to each type. (b) (i) Let k(t; T; s) denotes the return at time t
which type of financing is appropriate to each firm
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