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Hekmat Salem

Hekmat Salem

Accountant

الأسئلة المجابة 24544 | نسبة الرضا 97.9%

Banking & Finance

- (Please answer my questions in simple terms (as...

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- (Please answer my questions in simple terms (as simple as possible). Please note that I did NOT take any finance course at university.) - I have been thinking about what capital budgeting techniques to use for our investment selection criteria. Please explain why IRR (Internal Rate of Return) is not the best capital budgeting technique. - In relation to the estimation of cost of equity, please compare the dividend growth model and security market line approaches.

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إجابة الخبير: Hekmat Salem

Hekmat Salem

Hekmat Salem

Accountant

الأسئلة المجابة 24544 | نسبة الرضا 98%

Dear Customer,                                

Thanks for joining and trusting us, much appreciated!

 

We would like to inform you that it would be better if you determine and clarify the project that you are implementing or you want to study it, in order to provide the best answer.  

The rate of the internal income or return is the minimum income on the capital that makes the cash flow equal to the project cost or budget of the project or investment. In other words,. It is the least amount that the company will accept in order to invest in a new project.

To make it clear enough,  if the internal income  rate is greater than the cost of capital, then the project is good and make profit. However, if the rate was less than the capital cost then there is no benefit from the project.

If you have another question, feel free to ask us and we will answer with pleasure.

I hope my answer was helpful, please let me know if you have any follow up questions. If you feel I've answered your question already, please rate my answer from top of the page. Your feedback helps to ensure only the best experts are available to help you.

You can also ask questions of our other specialists in the areas of nutrition, therapists, IT specialists, doctors, and many more.

 

Kind Regards,
Hekmat Salem

الرد من العميل

- Question 2: In relation to the estimation of cost of equity, please compare the dividend growth model and security market line approaches.

إجابة الخبير: Hekmat Salem

Hekmat Salem

Hekmat Salem

Accountant

الأسئلة المجابة 24544 | نسبة الرضا 97.5%

Dear Customer,                     

Thanks for joining and trusting us, much appreciated!

 

We would like to inform you that please explain the question better.

Did you mean that you want to estimate the value of the stock you want to sell or want to issue for subscription or want another order because usually the value of the share is calculated by dividing the value of the capital increase you want to put up against subscription to the number of shares offered and this is very simplified, but if you want information Please explain the subject more.

 

I hope my answer was helpful, please let me know if you have any follow up questions. If you feel I've answered your question already, please rate my answer from top of the page. Your feedback helps to ensure only the best experts are available to help you.

You can also ask questions of our other specialists in the areas of nutrition, therapists, IT specialists, doctors, and many more.

 

Kind Regards,
Hekmat Salem

إسأل Accountant

Hekmat Salem

Hekmat Salem

Accountant

الأسئلة المجابة 24544 | نسبة الرضا 97.9%

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