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Expalin about the Non-Convertible Debentures (NCDs) NCDs are plain debenture securities issued by corporations. They are normally medium term in nature, maturing between 1 to 8
Define the first aspect of capital budgeting decision The first aspect of capital budgeting decision relates to the choice of new asset out of the alternatives available or rea
How is present value affected by a change in the discount rate? Present value is inversely associated to the discount rate. In other words current value moves in the opposite
Q. Problem in the determine of cost of the capital? Conceptual controversies regarding the relationship between the cost of the capital and the capital structure: different the
Functions of a Stock Exchange The stock exchange is a market place where investors trade in securities. It is a competitive market involving large numbers of buyers and sellers
The holder of a corporate debt instrument is preferred to equity shareholders in the bankruptcy proceedings. However, secured/senior creditors are preferred to no
Fundamentals of Structured Product Engineering 1. (a) Let r m denote the m month swap rate (or Libor rate). Subsequently the 3 × n month forward rate f (3 ×n )
Weighted average cost of capital of Firm: Use the following information to answer the questions. Security Beta Expected retur
Question: (a) Give the four main types of financial investments and state the risks and benets associated to each type. (b) (i) Let k(t; T; s) denotes the return at time t
Tests for Consistency The consistency of the index numbers have been tested over the years. The most important of these tests are: The time reversal test The
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