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What is a discount?
A blind discount is defined as the difference in cost between the listed cash price for equipment and the reduced financed amount. It can also be the difference between the list price of a ca and a lower interest rate.
Difference between rate constant and specific rate constant?
There is no difference between them they are same rate constant is another name of specific rate constant
What is the difference between mortality rate and death rate?
mortality rate - death rate
What is discount rate?
Discount Rate = Cap Rate - Genaral Inflation. If Cap ex % is known then the above formula becomes' Discount Rate = Cap Rate - Genaral Inflation - Cap Ex %.
WHICH ONE OF THE FOLLOWING STATEMENTS IS CORRECT ALL ELSE HELD CONSTANT tHERE IS AN INVERSE RELATIONSHIIP between the present value and the future value?
The statement is incorrect. There is an inverse relationship between present value (PV) and the discount rate, not between present value and future value (FV). As the PV increases, the FV also increases when the discount rate and time period are held constant. Conversely, a higher discount rate reduces the PV for a given FV.
What is the difference between profit maximization and value maximization?
discount rate
Difference between interest rate and discount rate?
Interest rate is the amount that is paid over and above the original loan amount. Discount rate is the amount of money that is cut or reduced from the original price.
Difference between discount rate and interest rate?
Interest rate is the amount that is paid over and above the original loan amount. Discount rate is the amount of money that is cut or reduced from the original price.
What is the difference between federal funds rate and the discount rate?
The Federal Funds rate abbriviated as Fed Funds is the overnight loan rate between banks. The Discount Window is the Federal Reseve Bank of New York's overnight interst rate charged to banks from the Federal Reserve, called the discount window rate.
What is the difference between the coupon rate and discount rate in financial investments?
The coupon rate is the fixed interest rate paid on a bond, while the discount rate is the rate used to calculate the present value of future cash flows in an investment.
What is a discount?
A blind discount is defined as the difference in cost between the listed cash price for equipment and the reduced financed amount. It can also be the difference between the list price of a ca and a lower interest rate.
What is the difference between the discount rate and the rate of return?
The discount rate is the interest rate used to calculate the present value of future cash flows, while the rate of return is the profit or loss on an investment over a specific period of time.
What is a blind discount?
A blind discount is defined as the difference in cost between the listed cash price for equipment and the reduced financed amount. It can also be the difference between the list price of a ca and a lower interest rate.
What the difference between discount rate and prime rate?
The discount rate is the interest rate charged by central banks to commercial banks for short-term loans, influencing overall monetary policy and liquidity in the economy. In contrast, the prime rate is the interest rate that commercial banks charge their most creditworthy customers, typically large corporations, for loans. While the discount rate is set by central banks, the prime rate is influenced by the central bank's policies and market conditions, often moving in tandem with changes in the discount rate.
Why does the yield on a discount security exceed the discount rate?
The yield on a discount security exceeds the discount rate because the yield reflects the total return an investor can expect upon maturity, which includes the difference between the purchase price and the face value. The discount rate, on the other hand, is simply the percentage reduction from the face value at which the security is sold. Since the yield accounts for the time value of money and the investment period, it typically appears higher than the nominal discount rate. This difference illustrates the actual profit an investor earns by holding the security until maturity.
What is the difference between the hurdle rate and the discount rate, and how do they impact investment decisions?
The hurdle rate is the minimum rate of return required for an investment to be considered worthwhile, while the discount rate is used to calculate the present value of future cash flows. The hurdle rate influences whether an investment is accepted or rejected, while the discount rate affects the valuation of the investment. Both rates play a crucial role in determining the feasibility and profitability of investment decisions.
What is the relationship between wacc and discount rate of return?
relationship between WACC and required rate of return.
