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Presently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate is $1.52/£. The three-month interest rate is 8.0% per year in the U.S. and 5.8% per year in t
Approaches of the Strategic human resource management (SHRM): 1. Attempts to the human linkage of some kind activities with competency based performance measures. 2. Attemp
Profitability Index (PI) : It is a ratio of the present value of the total cash benefits to the present value of the net cash outlay. The higher the PI, the higher the return.
Yield to put is the rate at which the present value of cash flow to the first put date is equal to the price plus interest rate. It is used for
It is a long-term call option to purchase common stock at a specified price.
Treasury Bills in International Markets A brief discussion on treasury bills in international markets is given below: Primary Market T-bills are important money market
Preferred Stock This is a category of capital stock that will gives its holders preference over common stockholders in the distribution of earnings or rights to the assets o
Compounding or Future Value Concept: - Under this process of compounding the future worth of all cash inflows at the end of the time horizon at a particular rate of interest are fo
What is the difference between pro forma financial statements and a cash budget? Explain why pro forma financial statements are not used to forecast cash needs. Pro forma
No External Financing for New Proposals: If a firm have sufficient retained earnings with it as required by the new proposal, then the firm may not raise any external finance. In
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