Write the two types of compounding situations?

Q: how about the solution of part D?

A: Here, Beta of stock = 1.35 Beta of risk-free asset = 0 Expected return of stock = 16% Risk-free…

Q: Define discrete compounding

A: Discrete compounding: It alludes to the process by which interest is ascertained at a few settled…

Q: What are the steps in solving problems involving partitive proportions?

A: In partitive proportion, at first it is to be understood that there is a relationship between the…

Q: In words, what is put-call parity?

A: Put-Call Parity It is a fundamental that shows the relation of option price i.e the European call…

Q: Write two examples of SWOT analysis

A: 2. SWOT analysis for Sedibeng Breweries Strength: Capital stock: A strong capital base has been…

Q: Define the term Continuous Compounding?

A: Continuous compounding is as far as possible which accumulating funds can surpass in the event that…

Q: What is overcosting? Explain? Give three examples?

A: Over Costing: Over costing is a state in which the estimated or reported cost of a product is more…

Q: Explain the features of HELOCs that differentiate them from HELs with example?

A: Home equity refers to the difference in the value of the home and the mortgage balance. In HELs and…

Q: What are the requirements of Continuous Compounding?

A: The question is based on the concept compounding of interest rate.

Q: Briefly explain on Salam and Parallel Salam.

A: Salam and Parallel Salam are modes of Islamic financing which are useful for traders and small…

Q: Explain compound interest.

A: Compound interest.

Q: Explain

A: LCNRV method means Lower of cost and net realizable value method.

Q: Explain the figure.

A: Cash Flow Statement This statement provides a complete analysis of the liquidity of the company and…

Q: Define compounding

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: Explain put–call parity relationship

A: Put-Call parity is the concept that defines the relationship between price of European call option…

Q: Explain rebalance

A: Rebalancing is the strategy for realigning portfolio weightings. Rebalancing incorporates buying or…

Q: Define the term NPW?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: What is Continuous Compounding?

A: Continuous compounding: Continuous compounding is a kind of compounding countless number of times in…

Q: Define Volcker rule

A: Volcker Rule is a regulation that implies restrictions on the banks to involve in the stock market…

Q: Explain the term differential analysis.

A: The term differential analysis is explained as follows:

Q: Define basis point

A: Answer: A base value is an approximate number, also used as an initial index value. All potential…

Q: Formula for put call parity?

A: Put call parity Put-Call parity defines the value of same class European put and call options. Put…

Q: What are the four basic assumptions underlie GAAP?

A:

Q: Which method is a more efficient way to obtain an equivalence?

A: Equivalence helps to equate the cash flows in such a manner that two cash flows occurring at…

Q: Distinguish between cumulative or noncumulative?

A: cumulative and noncumulative preferred is assumed since the key term is not given.

Q: What is Discrete Compounding?

A: Answer: Discrete compounding is nothing but a process by which value is measured at some fixed…

Q: Materiality Principle

A: The materiality principle specifies that the company would avoid an accounting principle if the…

Q: One should be aware of which four basic components of the compounding problem?

A: The four basic components for solving a compounding problem are given below: Principal Amount…

Q: Explain the process of Equivalence Calculations with Continuous Compounding?

A: Equivalence calculation is that calculation which gives the fix return surety in future in any…

Q: Describe two ways to reduce a complex ABC system of the two ways which has the most merit?

A: Activity based product costing (ABC) : ABC is a costing method in which it initially allocates costs…

Q: illustrate with an example how can we determine the IRR?

A: IRR is a method that tells the company how much returns the company will earn on the amount spent on…

Q: for osganizat

A: Business portfolio : In simple words, A business portfolio can be understood as the collection of…

Q: What is a double-entry? Give an example?

A: Double entry: Double-entry refers to the double effect of each financial transaction that occurs.…

Q: Distinguish between the single-rate and the dual-rate methods.

A: Cost Allocation: The process of assigning the cost to the cost object is cost allocation. The cost…

Q: Define the term precision.

A: Introduction: Precision is the amount of information provided by a number in terms of its digits; it…

Q: Compare the Mutually Exclusive Alternatives, based on IRR?

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

Q: Define the term Discrete Compounding?

A: Answer: Banks usually use two types of compounding processes. They are Continuous compounding, and…

Q: Differentiate between the direct method and the indirect method by discussing each method

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: Define discriminant function

A: DISCRIMINANT FUNCTION- If we have a set of K classes then we may define a set of K discriminant…

Q: What is put–call parity?

A: Conditions where two or more things are equal are known as parity. It refers to two securities…

Q: Duality effect is described as

A: The accounting transactions are identified , classified and recorded in journal at first step.

Q: Define duality.

A: Duality is related to happening of an economic transaction. This concept arises when any transaction…

Q: 1. What are externalities?

A: Comment-  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Explain the double entry mechanism with an illustrative example.

A: The transactions are recorded in the books of accounts initially in the form of journal entries…