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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.
Central Bank : The Central Bank is the nation's principal monetary authority responsible for the monetary policy of the country. It regulates money supply and credit, issues cur
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What is the decision rule for accepting or rejecting proposed projects while using internal rate of return? While the internal rate of return is greater or equal as compare to
Leveraged Buyout (LBO) Acquisition of an organization through the accumulation of 70 % or more of the organizations total capitalized debt.
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a) Debentures are a source of external long term (loan) finance for which interest is paid to the debenture holder. Debenture holders do not usually have voting or ownership rights
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