Show the advantages of adjusted discount rate, Financial Management

Assignment Help:

Q. Show the Advantages of adjusted discount rate?

Advantages:-

(1) It is simple to understand and simple to calculate.

(2) The risk premium rate comprised in the risk adjusted rate takes care of the risk element in the future cash flows of the project.

(3) It takes into account the risk adverse attitude of investors.

Related Discussions:- Show the advantages of adjusted discount rate

What is usual approach of capital structure, Q. What is usual Approach of c...

Q. What is usual Approach of capital Structure? Ans. Traditional Approach: - The traditional approach establishes middle among the Net Income approach and the Net Operating Inc

Exchange of physicals, Exchange of Physicals: A trader can also complet...

Exchange of Physicals: A trader can also complete the futures contract by engaging in exchange of physicals. In this method, the parties agree to exchange cash and the commodit

Tests for consistency, Tests for Consistency The consistency of the ind...

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

Pvif, how do we get the pvif of a perpetuity

how do we get the pvif of a perpetuity

Advantages and disadvantages of foreign direct investment, What are the dis...

What are the disadvantages and advantages of Foreign direct investment (FDI) like opposed to a licensing agreement with a foreign partner? Answer: The major advantage of FDI (

Determine in brief about venture capitalists, Determine in brief about Vent...

Determine in brief about Venture capitalists Venture capitalists are organisations which take on risky business ventures. They provide finance for and generally require a high

Price supports or acreage limitation programs cost society, Suppose the gov...

Suppose the government wants to increase farmers’ incomes. Why do price supports or acreage limitation programs cost society more than simply giving farmers money? Price acrea

Leadership, AskThink back to a time when you have worked for a supervisor w...

AskThink back to a time when you have worked for a supervisor who moved from one leadership style to another based on situational variables described in the Long and Spurlock (2008

Bond derivatives-callable bonds , Callable bonds give the right...

Callable bonds give the right to the issuer to redeem the bond prior to its maturity date, at a specified call price. These bonds are beneficial to the

Inflation in international markets, Inflation in International Markets ...

Inflation in International Markets In 1983, Gultekin tried to find out the relation between stock return and the inflation rates (expected/unexpected). He accomplished this by

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages