Already have an account? Get multiple benefits of using own account!
Login in your account..!
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Describes the Certainty Equivalent Coefficient Method?
Introduction: - Certainty equivalent coefficient process which makes adjustment against risk in the estimates of future cash inflows for a hazardous capital investment project.
In this process adjustment against risk is made in the estimates of future cash inflows of a risky capital project by adjusting to a conformist level of the estimated cash flows of a capital investment proposal by applying a correlation factor termed as certainty equivalent coefficient.
Formula for Computing Certainty Equivalent Coefficient: - The certainty equal coefficient is the ratio of riskless cash flow to risky cash flow. The certainty equal coefficient can be calculated with the help of the following formula:
Certainty Equivalent Coefficient = Riskless Cash Flow / Risky Cash Flow
(1) Riskless Cash Flow: - Riskless cash flow signifies the cash flow which the management expects when there is no risk in investment proposal.
(2) Risky Cash Flow: - Risky cash flow signifies the cash flow which the management expects when there is risk in investment proposal.
type of assets for ppt from t.y.bom com student in commerce department in financial management
Wealth Maximisation Decision Criterion This is also called as value maximisation or net present worth maximisation. Presently academic literature value maximisation is almost u
Different Cost of Capital with Changed Proportions: It is quite possible that the specific costs of capital of different sources may be affected by the amount of funds' raised and
a) Sponsorship - refers to monetary gifts or donations in support of a business or an event venture in return for a dominant display of the sponsor's name. In this case, FC Barcelo
Options Traded on Legal and General August 14 2009 Share Price Exercise Price Calls Puts Sep Dec Mar
What is the debt security in the financial term? Debt instruments are instruments which promise the payment of specified sums to the investor. Illustrations of debt instruments
Investors use two management strategies to manage their fixed income portfolios. They adopt either active management strategy or passive management strategy. A
Alpha and Beta Companies can borrow at the subsequent rates. Alpha Beta Moody's credit rating
What are the Types of Hedge Funds? Please provide me report on Types of Hedge Funds.
Suppose you can decrease the cash on hand and the company will require holding Net Working Capital (including cash) equal to 4% of the next year's sales going forward. This will r
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd