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 [...]
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 [...]
Read this article to learn about the top seven theories of investment analysis. The theories are: 1. Flow of Funds Theory 2. Market Efficiency and Random Walk Theory 3. Efficient Market Theory 4. Random Walk Theory 5. Trend Walk Theory 6. Capital Asset Pricing (CAP) Theory 7. Modern Portfolio Theory. Theory # 1. Flow of Funds Theory: To start with, [...]