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Why does money have time value?
Positive interest rates point toward that money has time value. When one person lets one more borrow money, the first person needs compensation in exchange for reducing current consumption. The person who borrows the money is ready to pay to increase current consumption. The necessary rate of return on an investment reflects the pure time value of money, an amendment for expected inflation, and whichever risk premiums present.
What are the Reasons why organisations grow Required to provide higher financial returns to investors e.g. increases the wealth of shareholders Possible to achieve econ
The dividend is the part of the net income that the company distributes to shareholders. As the dividend represents real money, the net income is also real money. Is that true?
what are the arguments in favour of profit maximization?
What factors are responsible for the recent surge in international portfolio investment (IPI)? Answer: The recent surge in international portfolio investments denotes the global
Q. Show the Graphic Presentation of Net Income Approach? Graphic Presentation of Net Income Approach: - Net Income approach is described graphically as follows: In the
Q. Allocation head for Revenue Expenditure? All revenue expenditure is recorded in revenue allocation registers by various heads of accounts classification, The expenditure on
uses and limitations of the marginal weighting system
Question : (a) A project must have a useful purpose. Therefore, as a project is evaluated, the team should determine the requirements of the local community and industry. These
You are considering an investment in a 40-year security. The security will pay $25 a year at the end of each of the first 3 years. The security will then pay $30 a year at the end
What is the meaning of Over-capitalisation It is the opposite of over trading. It means a company has a large volume of inventories, trade receivables and cash balances though
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