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Why is the replacement value of assets method not usually used to value complete businesses?
The replacement value of assets process is not often applied to complete business valuations as it is often very difficult to locate identical assets for sale on the open market, and as some of a business's assets are hard to define and quantify.
Illustration Let us assume that Vishal Mehta & Co., (from Illustration 1) is using the following discounting rates in place of one rate:
Advantage of Weighted Average Cost of capital 1) Straight Forward and logical: Weighted Average ost of Capital defines the oveall cost of capital as the sum of the cost of t
Calculate Debt or Equity Ratio XYZ LIMITED Key data related to XYZ for last three years is as follows: 2011/12 2010/12
The process of securitization can best be understood by taking the following example. Assume that there exists an NBFC which has hire purchase as its major busine
DEFINITION OF FINANCIAL MANAGEMENT Financial Management is a stream concerned with the generation and allotment of scarce resources (generally funds) to the most proficient use
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#how to calculate initial investment cash flows ..
Financial Ratios: Another method of measuring and monitoring performance is through the use of financial ratios and other comparative tools. Financial ratios use information
PARTICIPANTS IN THE SECONDARY MARKET The players in the secondary capital market include: Individual Investors (Public). Companies. Mutual funds. Financial Insti
Your friend Peter is planning to set up a new business which will manufacture and sell wooden tables. The parts that make up the table consist of a wooden table top measuring 1m by
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