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Which parameter better calculates value creation; the EVA (Economic Value Added), the economic profit or the CVA (Cash Value Added)?
The EVA (Economic Value Added) is the profit before interests minus the book value of the company multiplied by the WACC. The EP (Economic Profit) is the net income minus the book value of the shares multiplied by the needed return to equity.
Explain Zero coupon bonds The bonds that are sold at a discount from face value and do not pay any coupon interest over their life are known as Zero coupon bonds. At maturity t
Audit risk Obtain understanding of accounting and internal control systems. Sufficient to plan audit and develop effective audit approach. Professional judgement to
Q. Re-order point - technique of inventory management? Re-order point: - The re-order point is that stock level at which an order should be placed. Mutually the excessive and i
Explain the basic differences between the operation of a currency forward market and a futures market. Answer: The forward market is an OTC market in which the forward contract
Cost of Equity Share Capital (ke) The cost of equity capital is the 'maximum rate of return that the Co. must earn on equity financed portion of its investments in order to go
Yield to put is the rate at which the present value of cash flow to the first put date is equal to the price plus interest rate. It is used for
On the basis of transferability, debentures can be classified as registered and unregistered debentures. Unregistered debentures (or bearer debentures) are freely
Explain about the Interest payments Debenture interest is generally paid semi-annually however annual payments aren't uncommon. Usually there are registered debentures on whic
a) Variable costs: Remuneration of flight attendants, Meals and drinks onboard, Fuel. Fixed costs: promotions and Advertising, Remuneration of administrative staff and Airport c
The effective maturity of a callable bond can be anywhere between the first call date and its maturity date due to the presence of the call feat
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