Certainty Equivalents and Risk-Adjusted Discount Rates
... 1. Flip a fair coin. If heads comes up, you receive $1 million, but if tails comes up, you get nothing. The expected value of the gamble is (0.5)($1,000,000) ⫹ (0.5)($0) ⫽ $500,000, but the actual outcome will be either $0 or $1 million, so this choice is risky. 2. Do not flip the coin and simply po ...
... 1. Flip a fair coin. If heads comes up, you receive $1 million, but if tails comes up, you get nothing. The expected value of the gamble is (0.5)($1,000,000) ⫹ (0.5)($0) ⫽ $500,000, but the actual outcome will be either $0 or $1 million, so this choice is risky. 2. Do not flip the coin and simply po ...
Aberdeen UK Blue Chip Fund
... The CPF Board currently pays a legislated minimum annual interest rate of 2.5% on the Ordinary Account and a guaranteed minimum annual rate of 4.0% on the Special Account. The CPF interest rate is based on the 12-month fixed deposit and month-end savings rates of the major local banks and it is revis ...
... The CPF Board currently pays a legislated minimum annual interest rate of 2.5% on the Ordinary Account and a guaranteed minimum annual rate of 4.0% on the Special Account. The CPF interest rate is based on the 12-month fixed deposit and month-end savings rates of the major local banks and it is revis ...
Chapter 8
... on an investment will turn out to be less than expected when the investment is made Note: Includes earning slightly less as well as losing money ...
... on an investment will turn out to be less than expected when the investment is made Note: Includes earning slightly less as well as losing money ...
Slides
... dollar invested in the business RONIC is the return the company earns on each new dollar invested in the business (as opposed to existing IC). Investment Rate (IR) is the portion of NOPLAT invested back in the business = Net Investment/NOPLAT CoC is the cost of capital. Since capital can be obtained ...
... dollar invested in the business RONIC is the return the company earns on each new dollar invested in the business (as opposed to existing IC). Investment Rate (IR) is the portion of NOPLAT invested back in the business = Net Investment/NOPLAT CoC is the cost of capital. Since capital can be obtained ...
FIN303 - CSUN.edu
... stock price at the end of the supernormal growth period, and include it, along with the dividend to be paid at t = 5, as CF5. Then, enter the cash flows as shown on the time line into the cash flow register, enter the required rate of return as I/YR = 15, and then find the value of the stock using t ...
... stock price at the end of the supernormal growth period, and include it, along with the dividend to be paid at t = 5, as CF5. Then, enter the cash flows as shown on the time line into the cash flow register, enter the required rate of return as I/YR = 15, and then find the value of the stock using t ...
30. Earnings Per Share
... For the purpose of calculating diluted earnings per ordinary share, the weighted average number of ordinary shares outstanding is adjusted for the effects of all dilutive potential ordinary shares. The Company has three categories of dilutive potential ordinary shares: share options, performance sha ...
... For the purpose of calculating diluted earnings per ordinary share, the weighted average number of ordinary shares outstanding is adjusted for the effects of all dilutive potential ordinary shares. The Company has three categories of dilutive potential ordinary shares: share options, performance sha ...
Currency factors: More than a zero sum game
... different currency factors. We vary the allocation to the carry, value and trend factors over time based on the prevailing risk environment. Preliminary results show that a dynamic version of the currency factor portfolio can achieve higher returns than the statically weighted one without an increas ...
... different currency factors. We vary the allocation to the carry, value and trend factors over time based on the prevailing risk environment. Preliminary results show that a dynamic version of the currency factor portfolio can achieve higher returns than the statically weighted one without an increas ...
Prudential QMA Stock Index Fund Fact Sheet
... Past performance does not guarantee future results. Graph and CYP do not include the effects of sales charges and reflect reinvestment of all distributions. If sales charges were included, returns would have been lower. Holdings/allocations may vary. Largest holdings excludes cash, cash equivalents, ...
... Past performance does not guarantee future results. Graph and CYP do not include the effects of sales charges and reflect reinvestment of all distributions. If sales charges were included, returns would have been lower. Holdings/allocations may vary. Largest holdings excludes cash, cash equivalents, ...
Solution 1:
... All three activities gives information about cash flow received from sales revenue and other income. Question No: 31 ( Marks: 1 ) - Please choose one An investment proposal should be judged in whether or not it provides: ► A return equal to the return require by the investor ► A return more than req ...
... All three activities gives information about cash flow received from sales revenue and other income. Question No: 31 ( Marks: 1 ) - Please choose one An investment proposal should be judged in whether or not it provides: ► A return equal to the return require by the investor ► A return more than req ...
MBA Module 1 PPT
... IFRS-based balance sheet is presented in reverse order of liquidity. Income Statement The most visible difference is that GAAP requires three years’ data on the income statement whereas IFRS requires only two. ...
... IFRS-based balance sheet is presented in reverse order of liquidity. Income Statement The most visible difference is that GAAP requires three years’ data on the income statement whereas IFRS requires only two. ...
Chapter 6
... a. Stand-alone risk is only a part of total risk and pertains to the risk an investor takes by holding only one asset. Risk is the chance that some unfavorable event will occur. For instance, the risk of an asset is essentially the chance that the asset’s cash flows will be unfavorable or less than ...
... a. Stand-alone risk is only a part of total risk and pertains to the risk an investor takes by holding only one asset. Risk is the chance that some unfavorable event will occur. For instance, the risk of an asset is essentially the chance that the asset’s cash flows will be unfavorable or less than ...
Chapter 8 - Fisher College of Business
... Bond indenture – contract between the company issuing the bonds and the bondholders. A bond issue is normally divided into several individual bonds. The most common face value is $1,000 per bond. Quoted as % of face amount. ...
... Bond indenture – contract between the company issuing the bonds and the bondholders. A bond issue is normally divided into several individual bonds. The most common face value is $1,000 per bond. Quoted as % of face amount. ...
PPT
... • All costs incurred in exploration treated as GFCF of intellectual property (not natural resource): capitalization of knowledge • COFC necessary in calculation of RR • Costs of decommissioning mines and rigs should be deducted from RR, where possible • For service lives, use may be made of those us ...
... • All costs incurred in exploration treated as GFCF of intellectual property (not natural resource): capitalization of knowledge • COFC necessary in calculation of RR • Costs of decommissioning mines and rigs should be deducted from RR, where possible • For service lives, use may be made of those us ...
ab global high yield portfolio
... these documents, including the latest annual report and, if issued thereafter, the latest semi-annual report, may be obtained free of charge from AllianceBernstein (Luxembourg) S.à r.l. by visiting www.abglobal.com, or in printed form by contacting the local distributor in the jurisdictions in which ...
... these documents, including the latest annual report and, if issued thereafter, the latest semi-annual report, may be obtained free of charge from AllianceBernstein (Luxembourg) S.à r.l. by visiting www.abglobal.com, or in printed form by contacting the local distributor in the jurisdictions in which ...
Cash Flow for Manufacturing and Wholesale Companies
... does not generate cash to pay bills. The chairman of Citibank stated “The first question I would ask any borrower these days is ‘Do you know your break-even cash flow?’” When your company is short on cash, borrowing money may seem like the quick fix, and sometimes it is; however, you must keep in mi ...
... does not generate cash to pay bills. The chairman of Citibank stated “The first question I would ask any borrower these days is ‘Do you know your break-even cash flow?’” When your company is short on cash, borrowing money may seem like the quick fix, and sometimes it is; however, you must keep in mi ...
The Efficient Markets Hypothesis
... The 19th Annual Conference on Pacific Basin Finance, Economics, Accounting, and Management ...
... The 19th Annual Conference on Pacific Basin Finance, Economics, Accounting, and Management ...
Chapter 5 The Time Value of Money
... capitalizing the additional cash flows (after-tax cash flows). Capitalizing means to determine the value today. If we assume that these cash flows are received each year, then we divide the after-tax cash flows by the after-tax cost of funds. The appropriate after-tax discount rate = 6% x (1 – 0.40) ...
... capitalizing the additional cash flows (after-tax cash flows). Capitalizing means to determine the value today. If we assume that these cash flows are received each year, then we divide the after-tax cash flows by the after-tax cost of funds. The appropriate after-tax discount rate = 6% x (1 – 0.40) ...
D 1
... What sources of capital should be included when you estimate BHH’s weighted average cost of capital (WACC)? ...
... What sources of capital should be included when you estimate BHH’s weighted average cost of capital (WACC)? ...
Cash Flow IN Sources of Cash Flow in
... minus what a company owes OR What your business is worth at book value (not market value) ...
... minus what a company owes OR What your business is worth at book value (not market value) ...