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Put Option
This is a right which is granted in exchange for an agreed-upon sum to sell property. Options are mostly used frequently in securities transactions it also used stock options used as incentive compensation for key managers. If the right is not exercised within the specified time period it expires and the holder forfeits the money. Instead of exercising options, most investors prefer to purchase and sell them in the open market before expiration cashing in on rise in trading value. The most interesting features of trading in options are the amount of leverage option buyers enjoy. Buyers put up relatively small amount of money to handle a largest amount of common shares potentially leveraging sizable profits.
Accounting Framework - Convention of Consistency This doctrine denotes that accounting rules, practices & conventions should be continuously observed and applied that implies
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What is the present value of an annuity that makes a quarterly payment of $37,110 for 11 years, assuming an annual yield to maturity of 5%?
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Q. What is denoted by weighted average cost of capital OR Composite? How is it calculated? Exemplify with an example. Ans. Weighted Average Cost of Capital: - Capital formation
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