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What is compound interest? Compare compound interest to discounting.
Compound interest takes place when interest is earned on interest and on the original principal of an investment. Discounting is the opposite of compounding. Compound interest making the value of a beginning amount to increase at an increasing rate. Discounting makes the present value of a future amount to decrease at an increasing rate.
Shareholders versus Managers A Limited Liability company is possessed by the shareholders though in most of the cases is managed by a board of directors selected by the shareho
The IASB is in the procedure of undertaking a comprehensive review of accounting for financial instruments, and has issued a latest financial instruments standard referred to as IF
Q. Describe Modigliani and Miller Approach of Capital Structure? Ans. Modigliani as well Miller Approach: - The Modigliani-Miller approach is alike to the net operating income
1 Explain the difference between a forward start option and a package. Outperformance certificates are offered to investors by many European banks as a way of investing in a com
What are the Characteristics of the financing decision There are two characteristics of the financing decision. First, theory of capital structure which illustrates theore
Q. Describe Working Capital Decision? Working Capital Decision: - It is anxious with the management of current assets. It is a significant function of financial management. Cur
Illustrate the capital markets in maturity of the securities? On the basis of the maturity of the securities traded, capital markets can be introduced here: Capital markets
This is the part of after-tax personal income that is not spent.
Q. Drawbacks or Criticism of MM Approach? Risk Perceptions of personal as well as corporate leverages are different: - It is incorrect to presume that 'personal leverage' is a
You deposit $3,000 in a back account that pays 10% annually, how much would you have im your account after 5 years?
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