Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1. what determines the value of an economic asset?

1. What determines the value of an economic asset? 2. If we know the projected cash...

50.1K

Verified Solution

Question

Finance

1. What determines the value of an economic asset?

2. If we know the projected cash flows from loan notes and theircurrent market value, what approach would we take to deducing thecost of the loan notes?

3. Why does it seem likely that businesses have a target gearingratio?

4. What is wrong with using the cost of the specific capitalused to finance a project as the discount rate in relation to thatproject?

5. When calculating the weighted average cost of capital (WACC)should we use market values or balance sheet values as the weightsof debt and equity? Explain

Answer & Explanation Solved by verified expert
3.7 Ratings (604 Votes)
1 A value of an economic assets is the fair value or recoverable value or investment value of that thatAsset value depend on the type of user of that asset Life obsolences etc 2 We should enter into pay Libor received fix swap at    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

12 Which statement about regulation of gene expression in prokaryotes is true a The most...

Biology
Q

can someone explain how continous propagation works in a step by step process in an...

Biology
Q

Muscles get their names from their shape size action and OA A antagonism B insertion...

Biology
Q

Simplify by factoring Assume that no radicands were formed by raising negative numbers to even...

Calculus
Q

4 Savanah divides the guests based on age and asks everyone younger than 10 and...

Algebra
Q

Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations...

Accounting
Q

Required information (The following information applies to the questions displayed below.] In 2021,...

Accounting
Q

) Assets that qualify for interest cost capitalization include companys own sed A) assets under...

Accounting
Q

A company issued 5-year, 8% bonds with a par value of $101,000. The company received...

Accounting
Q

In 2021, Agnes recognized a $45,000 gain on the sale of Section 1231 property. Over...

Accounting
Q

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who...

Accounting
Q

As before, Company A has EBITDA of $110 million and debt of $30 million, assuming...

Finance