= sinking fund formula, calculate the

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: Define risk-adjusted cost of capital (r)

A: Risk adjusted cost of capital is the measure of returns of a project relative to the risks of a…

Q: Differentiate between Reserve capital and Capital Reserve on the basis of time when it can be used.

A: Capital:   It refers to the funds raised to support the business. It is the difference between the…

Q: When do the funds earn interest at the MARR?

A: The MARR (Minimum Acceptable Rate of Return), generally referred to as hurdle rate is the lowest or…

Q: Apply the procedure to find the true IRR, or return on invested capital, of the mixed investment?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: How does an index fund differ from an actively managed fund?

A: An index fund and actively managed fund are different investment vehicles. They have been explained…

Q: Create simple examples to illustrate the following concepts. i. Time value of money ii. Effective…

A: i) Time Value of Money: The concept of time value of money underlines that the value of money today…

Q: What is the purpose of using the retained funds?

A: After paying the dividends, the company retains the remaining net income which is called addition to…

Q: Define capital requirement ratio (CR)

A: Answer: Capital requirements are nothing but regulatory guidelines for banks that specify the amount…

Q: ExplainValuing REITs as Investments?

A: Valuing REITs as investments: A typical way for the calculation of REIT is to find the Net asset…

Q: Please decsribe, explain and give examples to the following terms so I can understand well:…

A: Contributed Capital The cash and other assets that shareholders have provided a corporation in…

Q: Explain the difference between asset allocation funds and lifecycle funds

A: Asset allocation Funds make investments in different asset classes based on the efficient frontier…

Q: Define sinking fund

A: Fund: A fund is a pool of money save for a particular purpose. Those pools can be frequently…

Q: Define additional funds needed (AFN)

A: AFN or additional funds needed is very much important for the organization because it helps them to…

Q: Discuss the main assumptions of the Capital Asset Pricing Model (CAPM).

A: The Capital Asset Pricing Model (CAPM) is a widely used financial model that calculates the expected…

Q: Describe the affects of the present value of an investment.

A: Present value of the investment: Present value of the investment is calculated using the cash flows…

Q: allocated to a capital

A: Company Allot share after Receiving Application If Application is oversubscribed then Company can…

Q: 3 what is the difference between a sinking fund and a call feature ?

A: Bonds are debt instruments. These are issued by the borrowing organizations to raise debt. Bonds…

Q: Explain the Accumulation of a Future Sum?

A: The concept which gives the value or worth of money held today at the future date due to its…

Q: Explain Estimating Development Cost and Interest Carry?

A: INTRODUCTION Estimating development cost in project management is the process of forecasting the…

Q: Define a financial asset

A: A contractual financial instrument is classified into financial assets and liabilities. They are an…

Q: Define Capital Market Line (CML)

A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…

Q: Name any Investment without Money

A: investment without money can be in learning anything in long run learning can create wealth as…

Q: Describe IRR on Incremental Investmentment When InitialFlows are equal?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Define target payout ratio

A: SOLUTION:- A target payout ratio is a degree of the proportion of a company's profits it would want…