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acceptance rule of payback period or pbpby using pbp method a company such will accept all those ventures whose payback period is less than to set
control of pattern formation limbs such as all other organs have a pattern what factor or factors environmental affects etc are responsible for
cost of retaining financethis will contains dividends for share capital and interest for debt finance or can say tax deducted or like effective cost
example of accounting rate of return example of accounting rate of return
accounting rate of return method or arrthis method utilizes accounting profits from financial status to assess the viability of investment proposal
compute the payback period - examplecedes restriction has the following details of two 2 of the future production plans just one of these machines
example of payback period methodsuppose a project costs sh80000 and will produce the following cash inflows
computation of payback period method1 under uniform annual incremental cash inflows - if the venture or an asset generates uniform cash inflows then
payback period method - traditional methodsthis method gauges the viability of a venture via taking the outflows and inflows over time to ascertain
methods of analyzing investmentcapital budgeting methodsthere are two process of analyzing the viability of such investment asa traditional process
political factors and technological factors - investment decisionsi political factors - under conditions of political uncertainty that decisions
significance of investment decisionsa such type of decisions is importance since they will influence the companys size or like fixed assets retained
financial planning a financial manager along with present investment policies will be concerned along with how efficiently the companys funds are
investment analysisany type of company will invest finance for the sake of deriving a return that is useful for four main purposes as1 to reward the
weaknesses of wacc as discounting ratewaccoverall cost of capital has the following problems like a discounting rate as it can simply be used as a
marginal cost of financethis is cost of new finances or additional cost a company has to pay to raise and use additional finance is given bytotal
computation of weights or proportionsin computation of the weights or proportions of different capital components the following values might be used
weighted average cost of capital weighted average cost of capital or wacc is also called the overall or composite cost of capital since various
cost of redeemable debentures and preference sharesredeemable fixed return securities have an exact maturity period the cost of those securities
dividend yield or gordons modelthis model is used to determine the cost of various capital components in particular cost of equity - ke cost of
example of capital asset pricing modelkk ltd is an all equity firm whose beta factor is 12 the interest rate on t bills is currently at 85 and the
capital asset pricing model capmcapm is a methods that is used to establish the required rate of return of an investment provided a particular level
example of market modelillustrationfor the past five 5 years the mps and dps for xyz ltd were follows as 1998shs1999shs2000shs2001shs2002shsmps
market model - methods of computing cost of capitalthis model is utilized to establish the percentage cost of ordinary share capital cost of equity
risk adjusted discounting rate - methods of computing cost of capitalthis method is used to establish the discounting rate to be used for a provided