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. Application of concept of TVM
Sometime the financial manager has to deal with the varying situation of the decision making where the concept of TVM needs to be applied in the one form or the other However. It may be noted the proper understanding of the cash flows selection o0f the appropriate discounting compounding technique and Appling the correct are some of the prerequisites of an appropriate decision based on TVM. Practice and experience, both are required for the purpose use of the technique of TVM. The following are the sum of application of the concept of the TVM.
1) finding out the implicit rate of the interest: several financial institution have issued the deep discount bond (DDB) where the investor is required to pay a specific amount per bond at the time of the of issue and receive a much a large amount at the end of the a specific period the rate of interest is not given the technique of the TVM can be applied to find out the implicit rate of interest applicable to DDBs.
2) Finding out the number of period: sometime one may be interested to find out the time over the period which a certain amount will grow at the given rate of interest to a certain value. In this case the value can be ascertained by solving the followings equation
FV= PV (1+r) n
What are the advantages and disadvantages of the aggressive working capital financing approach? An aggressive working capital financing approach generally results in a lower cost
XYZ Ltd is a group of doctors, dentists, professional sports players and celebrities with excess funds who wish to find small companies with great innovative ideas and invest in th
Q. Show Limitations of Profit maximization? The Profit maximization criterion is criticized on the following grounds: i) Quality of Benefits: Profit maximization approach ig
Start-Up Financing Capital provided to companies which have been in operation for less than one year to facilitate all phases of bringing their product to market.
Question: a. Le Mustang company Ltd is foreseeing a growth rate of 15 per cent per annum in the next three years. It is likely to fall to 12 per cent in the fourth year. Afte
Dividend yield plus growth in dividend method When the dividends of the firm are predictable to grow at a constant rate and the dividend payout ratio is constant, this techniq
Two years ago, Randburg Ltd needed to accumulate a total of R250000 by the end of 5 years to acquire new imported machinery. To do so Randburg Ltd makes quarterly-annual deposits i
Dividends are expected to grow at a constant rate of 5 percent per year in the future. Firms last dividend was $1 and stock price 10 dollars the firms beta 1,2 the rate of return o
Financial statement analysis report: 1. Perform a comparative analysis (horizontal analysis). Analyze two items on the balance sheet and two items on the income statement for
Determine the steps for managing the funds For managing the funds first thing you would need is information. Externalinformation has to be collected from environment and accoun
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