Basic financial principles

Assignment Help Finance Basics
Reference no: EM131623762

One of the basic financial principles is that the value of any asset (whether it be a stock, a bond, or a firm as a whole) is the present value of that asset's future cash flows. As you learned in this chapter, finding present values requires determining a discount rate. Assume you want to buy a business, and you want to find the present value of its future cash flows. Name at least one variable you should consider in determining the correct discount rate to use and explain its role in discount rate determination. If possible, try to identify a variable that has not yet been mentioned by your classmates.

Reference no: EM131623762

Questions Cloud

Aspects related to future financial needs : Carl is considering investing in annuities as part of his retirement strategy. Explain two (2) aspects related to his future financial needs as a retiree.
Outline the purpose steps within the activity : Outline the purpose, steps within the activity, and the desired outcome (s)... One of the key elements of the training activity should be focused.
How much must you save each month to reach your goal : If you can earn 3.50% APR on your investment over the time frame, how much must you save each month to reach your goal?
Should the firm change its capital structure : The firm can increase its debt by $8 million, to total of $ 10 million, using the new debt to buy back and retire some of its shares.
Basic financial principles : One of the basic financial principles is that the value of any asset (whether it be a stock, a bond, or a firm as a whole) is the present value of that asset's.
How much will the lender receive : After thirteen years, the borrower (the mortgage issuer) pays it off. How much will the lender receive?
What should be the death penalty for someone mental : Amendment XXII, presidential term limits. In addition to forcing out popular incumbents, this amendment also causes a president to become a lame
How to make the decision-seek unanimity or consensus : Think of a group with which you work or of which you are a member and a recent important decision made by that group.
Explain the concept of maximizing shareholder value : 1. Explain the concept of maximizing shareholder value. What do we mean by that phrase and how is it measured?

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the betas listed for these companies

What are the betas listed for these companies? If you made an equal dollar investment in each stocks what would be the beta of your portfolio?

  Define underpricing and explain why the majority of ipos

define underpricing and explain why the majority of ipos are underpriced. what role do investment banks play in the

  Estimate of the stock current intrinsic value

What is the best estimate of the stock's current intrinsic value? Note: Enter your answer rounded off to the nearest cent. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answe..

  What is meant by postproduction support

There are various types of contract structures that can be imposed through the contract negotiation process to include FFP, FP, CPFF, CPIF, cost sharing, and time and material. Describe each and include some discussion as to applications.

  Computation of sales level for a target net income

Computation of Sales level for a target net income and How much in sales would Swann have to obtain to generate $2,000,000 in net income

  Differentiate between profit and wealth maximization

Differentiate between profit maximization and wealth maximization. Why must organizations focus on both shareholder wealth and the stakeholders?

  What is the economic ordering quantity

1. What is the economic ordering quantity? 2. How many orders will be placed during the year?

  What measures could be taken to improve the integrity

To what extent should investors put their trust in these financial statements and what measures could be taken to improve the integrity of these statements?

  How much would you have for a down payment at end of year

Your expected annual return is 5%. How much would you have for a down payment at the end of Year 4? Round your answer to two decimal places.

  Develop a communication plan for the composition

Develop a communication plan for the composition of your course Learing Team deliverables. Research methods and templates for developing an effective project communication plan as a means of selecting an appropriate format or template.

  Manager of a health club franchise believes

Based on data from the district office, a manager of a health club franchise believes that 32% of the members join in the winter, 24% join in the spring

  Assume that during the period following the transaction the

describe a situation in which a financial manager might use an interestrate future. assume that during the period

Free Assignment Quote

Assured A++ Grade

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