Finance - QS Study
QS Study

Difference between ordinary annuity and annuity due

The difference between ordinary Annuity and Annuity Due are below: Ordinary Annuity: Definition: Ordinary annuity is the payment or receipt occurs at the end of each......

Difference between discounting and compounding

The difference between discounting and compounding are discussed below: Discounting: Definition: Discounting is the process finding the present value 01 future cash flow or series......

What are the determining factors of time value of money?

The time value of money relevant to making financial decisions because: Investment decision: Investment in current tear and cash inflows received in future from that......

What is rule of 72 and rule of 69?

Rule of 69 Use N = 69 when dealing with any continuous growth process, or when you have a periodic growth process and the rate......

Define time value of money

The time value of money theory states that a dollar that you have in the bank today is worth more than a reliable promise or......

What would be the likely effect on the required rate of return on equity?

Risk-averse investors will assign lower values to assets that have more risk associated with them than to otherwise similar assets that are less risky. The......

Difference between Systematic Risk and Unsystematic Risk

The difference between systematic risk and unsystematic risk are: Systematic Risk Definition: Systematic risk is that portion of the security risk which cannot be diversifiable from......

What are the social responsibilities should be carried out by the firm?

The major arguments for the assumption of social responsibilities by business are: Public expectations: Social expectations of business have increased dramatically since the 1960s. Public......

Why is wealth maximization considered a better approach than profit maximization?

We know that the goals of financial management are profit maximization and wealth maximization. These are the important objectives of business firms. Now the question......

What is an Annuity?

An annuity is a contract that can increase in value and provide a steady income over a long period of time. People often use annuities......

The Principles of Finance

There are ten principles that form the basis of FINANCIAL MANAGEMENT. These can be called as the foundation of finance that plays a significant role......

Explain different sources of risk

Traditionally investors have talked about several sources of total risks, such as interest rate risk and market risk, which are explained below, because these terms......