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What is compound interest? Compare compound interest to discounting.
Compound interest takes place when interest is earned on interest and on the original principal of an investment. Discounting is the opposite of compounding. Compound interest making the value of a beginning amount to increase at an increasing rate. Discounting makes the present value of a future amount to decrease at an increasing rate.
What are the objectives of working capital management? Briefly explain the various elements of operating cycle.
You've just won a huge $100 million lottery. You've decided to invest your winnings in the following way: $30 million in real estate, $30 million in corporate bonds and $40 mil
Q. Importance of Capital Budgeting Decision? 1. Such Decision affect the profitability of the Firm: - Capital Budgeting decision influences the long-term profitability of a fir
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Sunk Cost This is a cost which has already been incurred and cannot be affected through present or future decisions.
Central Bank : The Central Bank is the nation's principal monetary authority responsible for the monetary policy of the country. It regulates money supply and credit, issues cur
Determine the name of some profit margin ratios Other profit margin ratios can also be computed: Gross profit/ turnover Profit after tax/ turnover Advertising co
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Determine the advantages of explicit cost Explicit cost of an interest bearing debt will be the discount rate which equates present value of the contractual future payments of
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