Explain why the present value of a cash flow stream, and the asset associated therewith; fluctuate...

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Finance

  1. Explain why the present value of a cash flow stream, and theasset associated therewith; fluctuate in value with the level ofinterest rates in the capital markets.

     2.   List and explain thepoints of financial impact on a company if it raises the creditstandards required of its customers who utilized trade creditoffered by the

          company.

  1. Define Weighted Average Cost of Capital and explain why acompany must earn at least its Weighted Average Cost of Capital onnew investments. What are the financial implications if it doesnot?

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