Explain traditional method of measurement, Financial Management

Q. Explain Traditional Method of Measurement?

Computation of yield to measure a financial asset's return is the simplest and oldest technique of measurement. Yield can be find out by following formula.0Expected Cash Income a same as current assets

(b) Actual yield = Cash Income Amount Invested

The yield that is calculated is for a particular period to find out the return on the amount that is invested. Yield can be computed both for bonds and stocks.

Bonds: Bonds usually have a maturity period. Yield on them can be calculated either for the current period or on maturity. While it is advisable to find out yield to maturity and it is also the common practice, yet the current yield on the bonds can also be found out.

Posted Date: 6/19/2013 7:10:11 AM | Location : United States







Related Discussions:- Explain traditional method of measurement, Assignment Help, Ask Question on Explain traditional method of measurement, Get Answer, Expert's Help, Explain traditional method of measurement Discussions

Write discussion on Explain traditional method of measurement
Your posts are moderated
Related Questions
All the bonds are not making periodic coupon payments. Zero-coupon bonds are those bonds where the bondholder realizes interest by buying it at a deep discount to its face

D esign, Drawing and Bill of Quantities (BOQ) for works We discussed about INCO terms which are set standards for the project. Now let us learn about other parameters for cont

Insider Trading Insider trading refers to dealing in securities by persons who are privy to specific information of companies. This possession of confidential information gives

Explain how a firm determines the optimal level of current assets. The optimal level of working capital is defined by finding the amount that balances the requirement for liquidi

Chain Index Numbers So far, we have constructed index numbers with a fixed base. Sometimes, comparison between the current/given year and the base year becomes meaningless once

Decentralization This is a company power structure in which authority and decision-making responsibility are diffused throughout various stages of an organization. Decentraliz

discuss the applicability ofan operating cycle in a poultry business(broilers)

FUNCTIONAL AREAS OF FINANCIAL MANAGEMENT The scope of financial management is all pervasive and covers approximately all the functional areas of an organization. A number of t

What does an investment banker do when underwriting a new security issue for a corporation?  When underwriting a new security concern an investment banker buys it and then rese

Is there an optimal capital structure? What is it and how can it be calculated? There is no optimal capital structure. Capital structure is a variable which depends on the incl