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04.06.2016Dividend policy
04.06.2016Dividend policy

... dividends or repurchase shares. • The amount of money involved in payment suggests payout decision is a significant issue in many companies operation. • Retained earnings are the most significant internal source of financing. Dividend is a cash outflow to the company. On the other hand, dividend inc ...
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Financial Cycles with Heterogeneous Intermediaries

... much does each lever). This is a key novel feature of the model. Having variation in the intensive and the extensive margins generates both movements in aggregate leverage and asset pricing implications which are unusual in our models but seem to bear some resemblance with reality. Contemporaneousl ...
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... core market for the Group. The Group has in its property portfolio, about 1.8 million square metres of Gross Floor Area (GFA) in Beijing, Shanghai, Nanjing and Tianjin. Approximately 500,000 square metres is the Guoson Centre in Shanghai Changfeng and 600,000 square metres in the Guoson Centre in B ...
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... Vinberg [1993] studies risk arbitrage in the Swedish stock market during 1987-1992. He examines whether abnormal returns can be earned against the risk free interest rate and the market index. Vinberg finds negative abnormal returns against the market index, and reports insignificant positive abnorm ...
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Exchange Rates and the Foreign Exchange Market: An Asset

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Foreclosure Update and New Appraisal Regulations
Foreclosure Update and New Appraisal Regulations

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Present value

In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of negative interest rates, when the present value will be greater than the future value. Time value can be described with the simplified phrase, “A dollar today is worth more than a dollar tomorrow”. Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant, without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds (the present value) is less than the total amount of money paid to the lender.Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times. The idea is much like algebra, where variable units must be consistent in order to compare or carry out addition and subtraction; time dates must be consistent in order to make comparisons between values or carry out simple calculations. When deciding between projects in which to invest, the choice can be made by comparing respective present values of such projects by means of discounting the expected income streams at the corresponding project interest rate, or rate of return. The project with the highest present value, i.e. that is most valuable today, should be chosen.
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