Briefly define the following cash flow estimation concept: Inflation effects

Q: What is a benchmark and why is there a need to compare the fund's return vis-a-vis a benchmark?

A: Benchmark is considered as a standard against which the actual performances of the securities are…

Q: The interest rate is the price paid to obtain debt capital.  True  False

A: Banks, financial institutions, or private lenders, each one of the lending parties charges interest…

Q: What is the cost of capital?     Short-term securities held in lieu of cash     The amount of…

A: Cost of capital refers to the evaluation of a project's capability to yield returns exceeding its…

Q: Explanation of oragnisation of finance fubctions of the compnay vedanta limited with the help of a…

A: A collective of individuals collaborating to accomplish a shared objective or purpose. This may…

Q: Course Title: Principle Of Healthcare Finance Briefly define the following cash flow estimation…

A: Opportunity cost is a very important concept in valuation and finance.

Q: Define effective annual rate (EAR) with examples. Differentiate between annuity cash flows and mixed…

A: Nominal interest rate (annual interest rate) is the annual rate without effect of compounding.

Q: Discounting an investment’s cash flows using the internal rate of return will result in which of the…

A: Introduction: The internal rate of return (IRR) is a research and consulting metric used to assess…

Q: What is the basis for the discount rate in a DCF analysis? Describe how this rate mightbe estimated.

A: Basis of discount rate in DCF analysis is to compute the PVF of future Cash Flows expected as it is…

Q: À savings account should be used for your emergency fund and your O Short-term savings goals O…

A: Savings account is an account where short term funds are deployed with immediate use. It generally…

Q: Please explain the difference between the terms interest rate and required return by defining each.

A: The amount which is charged by the lender to the borrower in order the use assets is known as the…

Q: Draw and explain the impact of budget deficit on loanable fund market and on the macroeconomic…

A: Investment Savings and investment spending on the physical capital are the categories of the real…

Q: The discount rate is the combination of what two types of discounting?   a. exponential and linear…

A: Discount rates are used for discounting the future cash flows. It helps in determining the time…

Q: Give an example of the Present Value of Perpetuities?

A: Perpetuity is a continuous annuity, a progression of equivalent interminable cash flows happening…

Q: True/false   Under IFRS, the discount rate should reflect risks for which future cash flow…

A: False  Refer step 2 for explanation

Q: Which one of the financial principles are involved when determining whether or not to accept a…

A: Capital Budgeting:- Capital budgeting is a process of evaluating then comparing alternatives then…

Q: What cash flows are discounted in the FCFE model, and what is the discount rate?

A: FCFE MODEL: FCFR is known as free cash flow to equity or levered free cash flow, it is a model…

Q: Give some examples of Discounted cash flow?

A: Discounted cash flow: It's a time value method to calculate the project or investment value  using…

Q: Sinking Fund under Cash and Cash Equivalents?

A: Sinking Fund is a fund that contains cash which is set aside to pay off a  long term debt or bonds…

Q: Using examples, differentiate between short term and long term finance?

A: Financing: It represents a process where the business is funded for its activities or buying…

Q: Describe the essential differences between the following cash flow streams: Annuity versus…

A: The difference in the cash flows will arise due to the change in the time period which is associated…

Q: he optimal capital structure decision is based on _____.     Asset structure     Industry…

A: When the financial risk is higher and the condition of the market is favorable, the firm would be…

Q: Which one of the theories states that “the rate of interest is set in the market for money…

A: Interest rates are fluctuated based on different parameters of the economy. There are different…

Q: What is the most commonly used capital budgeting procedures? Select one: a. IRR b. Payback period…

A: Capital budgeting Capital budgeting is a process that involves investing funds in long-term…

Q: Describe the Investment-Credit Decision—A Cash Flow Perspective.

A: Answer: Every lender and borrower shall have their own conditions based on their needs and wishes.…

Q: The APR is a. the average annual percentage cost paid on deposits b. the average rate paid on…

A: The APR is (c) the average rate paid for credit

Q: Discuss briefly the liquidity preference theory (LFT) and differentiate it from the loanable funds…

A: Liquidity is referred as the degree, where the security used to buy or sell quickly in the market at…

Q: Define each of the following terms:a. Capital budgeting; payback period; discounted payback period

A: Capital Budgeting is a decision making process in which company requires to evaluate long-term…

Q: Name three types of profitability ratios.

A: Ratio Analysis is the method of checking a company's operational efficiency, liquidity, and…

Q: Define the term the annuity factor?

A: An annuity factor is financial value that, when multiplied by a periodic amount, then it shows the…

Q: ctive interest rate

A: The objective is to find the name of the interest that is defined as the interest paid on the…

Q: yback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Ne

A: Step 1 A huge budget is a method through which a company assesses possible substantial projects or…

Q: How can fi nancial statement analysis be used to evaluate the credit quality of a potentialfi…

A: Whenever, an investor is considering an investment proposal, he need to analyze the various things…

Q: Select all of the time value of money factors that are known in a NPV assessment O Present value of…

A: npv : IT IS THE DIFFERENCE BETWEEN PRESENT VALUE OF CASH INFLOW AND PRESENT VALUE OF CASHOUTFLOW.

Q: What finance principles can you use during the DMAIC process?

A: The DMAIC structure can be used to systematically optimise business processes. DMAIC is a five-step,…

Q: When we use the AFN equation to forecast the additional funds needed (AFN), we are implicitly…

A: Additional fund needed is the funding that company would require for coming year based on the sales…

Q: Define each of the following terms:l. Interest rate risk; maturity risk premium (MRP); reinvestment…

A: Interest rate risk: Interest rate risk is the chance of a decay in the worth of an asset resultant…

Q: Annuity Present Value Inputs Payment Discount Rate/Period Number of Periods Present Value using a…

A: Present value of annuity is the present value of all the stream of cash flows that occur in future.…

Q: e following methods of capital budgeting tries to equate the present value of cash inflows to…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Course Title: Principle Of Healthcare Finance Briefly define the following cash flow estimation…

A: We have to define Incremental Cashflow estimation Concept