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!
Example of Theoretical Value
As a result of the purchase of an asset, the income stream will rise by of £1,000 per annum for 25 years. By assuming a discount rate of 20 percent, calculate the maximum price to be paid for this asset avoiding taxation.
Solution
Maximum price = Present value of all future cash inflows
Maximum price = £10,000 x PVAF20%, 25
£10,000 x (1- (1.2)-25) / 0.20 = 10,000 x 4.9476
= £49,476
During practice the income streams are never uniform and contain to be estimated from existing income indicted in the current accounts.
What role do primary financial markets play in our economy? What role do secondary markets fill? Describe the relationship that exists between financial institutions and financial
What is Nominal and Real Return While nominal return is the return in nominal rupees, real return is equal to the nominal return adjusted for changes in prices i.e. rate of
Define the process of Opening an Account with Broker After a broker has been selected, the investor has to place an order on the broker. The broker will open an account in t
Klose Outfitters Inc. believes that its optimal capital structure having of 60% common equity and 40% debt, and its tax rate is 40%. Klose have raise additional capital to fund its
A bond that has $1000 face value and a contract interest rate of 11.4%. The bonds have a current value of $1124 and will mature in 10 years. The firms marginal tax rate is 34%. The
Fixed income security can be defined as the financial obligation of an entity (known as the issuer), which promises to pay a specified amount of money on a pre-sp
What is the one-year Treasury security rate of 1R1? For 1R3=11%, E(2r1)= 4% and E(3r1)=5%
A+/A1 It is one of the top ratings that a ratings agency allots to an issuer or insurer. This rating indicates that the security or carrier has steady financial backing and ple
Advantages of Bonus Matter a) Tax advantages Shareholders can sell new shares, and create cash in form of capital gains such is tax exempt unlike cash dividends wh
Shareholders and Management There is near separation of ownership and management of the firm. Landlord employs professionals as managers who such have technical skills. Manage
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