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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 direction of the discount rate. If the discount rate enhance, current value decreases. If the discount rate reduces, present value enhances.
What role does depreciation play in calculating incremental cash flows? Depreciation expense is a tax deductible expense and hence influences cash flow by its effect on taxes.Dep
Explain the bird in the hand theory of cash dividends. The bird in the hand dividends theory state that dividends received now are better than a promise of future dividends. U
Q. What do you mean by Utility? Utility: - Financial leverage assists considerably the financial manager while devising the capital structure of the company. A high financial l
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Like corporate bonds, non-corporate bonds such as asset-backed securities, mortgage-backed securities, municipal bonds, sovereign bonds are also exposed to credit
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what is amount of cash dividend if investor buys share of 100 at premium of 400.
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