How do we handle a situation when both compounding period and cash flow interval are given to us but both are less than a year and not equal to each other?
What will be an ideal response?
Answer: Additional care should be taken when the compounding period is given to us and it does not equal the cash flow interval. This requires some additional steps in computing the applicable interest rate. The compounding interval has to match the cash flow interval to enable transformation to present value (PV) or future value (FV). In most cases, it should be possible to achieve this by calculating the effective annual rate from the given compounding interval and subsequently calculating the annual percentage rate and periodic interest rate for the cash flow interval.
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Why does severe ethnocentrism impede cultural competence?
a. An ethnocentric person will reject the uniqueness of other cultures. b. Ethnocentrism prevents learning another language. c. An ethnocentric person will not understand culture. d. Ethnocentrism leads to hate speech.
U.S. GAAP view investments of between 20 and 50 percent of the voting stock of another company (unless evidence indicates that significant influence cannot be exercised) as
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Answer the following statement true (T) or false (F)
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A. national value creation. B. national competitive advantage. C. domestic competitive advantage. D. domestic value creation.