In this article we will discuss about:- 1. Meaning of Cost-Benefit Analysis 2. Use of Cost-Benefit Analysis 3. Cost-Benefit 4. General Steps 5. Internal Rate of Return Approach 6. Shadow Prices and Project Evaluation 7. Importance. Meaning of Cost-Benefit Analysis: While taking business decisions the private firms being driven mainly by profit motive take into account only the internal direct [...]
Lending of money is for a return in the form of interest. The rates of interest vary with the purpose and maturity and a host of other factors. Thus, advances made by banks and financial institutions are at varying rates of interest and Reserve Bank has allowed freedom to banks to fix their prime lending rates, which are the rates [...]
The following points highlight the three main types of fundamental valuation of securities in a company. The types are:- 1. Valuation of Convertible Bonds/Debentures 2. Valuation of 'Rights' 3. Valuation of Bonds. Type # 1. Valuation of Convertible Bonds/Debentures: Convertibles enjoy the benefits of both debt (initially) and equity (later). The terms of conversion will decide the pricing of these [...]