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Compounding or Future Value Concept: - Under this process of compounding the future worth of all cash inflows at the end of the time horizon at a particular rate of interest are found. Interest is compounded when the sum earned on an initial deposit becomes part of the principal at the end of the first compounding period.
Instance: - If Mr. A invests Rs 1000 in a bank which tender him 10% interest compounded annually he as Rs 1100 in his account at the end of the first year. The total of the interest as well as principal Rs 1100 constitutes the principal for the next year. He therefore earns Rs 1210 for the second year. This turns into the principal for the third year and so on.
What were the main objectives of the Bretton Woods system? Answer: The major objectives of the Bretton Woods system are to acquire exchange rate stability and promote internation
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Determine about the Shareholders Shareholders, being the owners of the company, elect board of directors and vote on major issues that affect functioning and long term plans of
What action(s) should be taken if analysis of pro forma financial statements reveals positive trends? Negative trends? When examine the pro forma statements, managers habi
working capital management?
How can funds be raised Funds are raised from financial markets. Financial markets is a general term used todenote markets where financial securities are teat. These markets in
Under what circumstance would the U.S. dollar and the Canadian dollar be said to have achieved purchasing power parity? The U.S. dollar and the Canadian dollar possible conside
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Bond Indenture An indenture builds the formal conditions of a lending relationship between a borrower and a lender. It is a written record, and it outlines most important func
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