Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
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!
List and explain the three financial factors that influence the value of a business.
The three factors that influence the value of a firm's stock price are timing, cash flow, and risk.
The Importance of Cash Flow: In commerce, fund is what pays the invoice. It is as well what the firm receives in exchange for its services and products. Cash is thus of ultimate importance, and the prospect that the firm will generate funds in the future is one of the factors that gives the firm its value.
The Effect of Timing on Cash Flows: Potential investors and Owners look at when firms can expect to receive funds and when they able to expect to pay out cash. All additional factors being equal, the earlier companies expect to receive cash and the later they expect to pay out cash, the further more valuable the firm and the higher its stock price will be.
The Influence of Risk: Risk affects value for the reason that the less certain investors and owners are about a firm's expected future cash flows and the lower they will value the company. The more certain investors and owners are about a firm's expected future cash flows and the higher they will value the company. In short, the companies whose predictable future cash flows are uncertain will have lower values than companies whose predictable future cash flows are practically certain.
Consider a currency swap in which the domestic party pays a fixed rate in foreign currency, the UK pounds sterling, and the counterparty pays a fixed rate in US Dollars. The not
Q. Final stage of career? The final stage in one's career is difficult for everyone but is it hardest for those who have had continued successes in the earlier stages. After se
To value an option-free bond, we must determine the on-the-run yield curve for the particular issuer whose bond we have to value. This on-the-run yield curve used
Assume a bank charges a 15.5% APR (annual percentage rate) on credit card holder compounds quarterly. What EAR (effective annual rate) is the bank is charging? What if they change
Differences between Hedge Funds and Mutual Funds Hedge Funds are extremely flexible in their investment options because they use financial instruments generally beyond the reach
Define intermediation . The monetary system makes it possible for deficit and surplus economic units to come together exchanging funds for securities to their mutual benefit.
As we know that price of option-free bond changes in the opposite direction from a change in bond's required yield, Table 1 and figure 1 explains this feature of
The issuers of ALBS are the financial subsidiaries of automobile manufacturers, commercial banks and other independent finance companies and small financial insti
Partial Income Statement Year Ending 2011 Sales Revenue $350,000 COGS $140,000 Fixed Costs $ 43,000 SG&A E
Explain why accounting profits and cash flows are not the same thing. Stock worth depends on future cash flows, their riskiness and their timing. Profit calculations don't con
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd