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

Algebra
1.2K views

You want to be able to withdraw $40,000 each year for 30 years. Your account...

Mechanical Engineering
1.2K views

Please explain 3 different types of communications. List what are the positive and negatives about the...

Basic Math
1.2K views

The authors of a paper concerned about racial stereotypes in television counted the number of times...

Basic Math
1.2K views

Determine the equation of the straight line with a slope 2 and passing through the...

Statistics
1.2K views

Product design Electricity Setup Total 20 000 50 000 520 000 Required 1 Compute a...

Statistics
1.2K views

To construct a confidence interval for the difference between two population means H use the...

Calculus
1.2K views

t the following radian measure to degree measure

Accounting
1.2K views

Bank Reconciliation The following data were gathered to use in reconciling the bank...

Accounting
1.2K views

BQ, Inc., is considering making an offer to purchase iReport Publications. The vice president of...

Accounting
1.2K views

wonder lilly laid $1,950,000 for a new warehouse on april 142021 he plans to sell...

Finance
1.2K views

Purple Construction just bought supplies from Forest Sugar. There are 3 payment options. Option A...

Accounting
1.2K views

The adjusted trial balance of Elmo Real Estate Appraisal at June 30, 2024, follows: (Click...