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Aggregates Method Under the aggregates method of constructing an index number, we could have unweighted aggregates index and the weighted aggregates index. Unweighted Aggr
Cost of Debt (k ) : This describes the rate of interest payable on debt. The cost of debt funds may be calculated when the debt is redeemable or irredeemable. therefore, when deb
The salem company bond currently sells for $955 has a 12% coupon interest rate and $ 1000 par value pays interest annually an
Q. Major proportion of the maximum financing requirement? Whether the credit terms themselves is able to be changed may depend upon the credit terms of competitors when set alo
MARGINAL ANALYSIS It is difficult to develop the conditional profit table when there are a large number of scenarios and possible actions. The marginal analysis approach sides
Modern / Discounting Cash Flow Techniques : These methods generally are of more use to businesses in their investment decisions. They take into account the time value of money and
Explain the mechanism which restores the balance of payments equilibrium when it is disturbed under the gold standard. Answer: The adjustment mechanism within the gold standar
Briefly discuss the three approaches to the short-term financing problem and provide relevant examples of each?
Accept-Reject Rule: The decision rule is to accept the project if the computed payback period is less than the standard. If not, reject it. While ranking the projects, projec
Which is lower for a given company: the cost of debt or the cost of equity? Explain: Ignore taxes in your answer . The cost of debt is all the time less as compared to the cost
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