The following article will guide to learn how to calculate annuity of cash flows in a company. An annuity is a cash flow, either income or outgoings, involving the same sum in each period. An annuity is the payment or receipt of equal cash flows per period for a specified amount of time. For example, when a company set aside [...]
Learn how to calculate amortisation and sinking fund during valuation of a firm. Calculation of Amortisation: Amortisation is the gradual and systematic writing off of an asset or an account over a period. The amount on which amortisation is provided is referred to as “amortizable amount”. Depreciation accounting is form of amortisation applied to depreciable assets. Depletion is a form [...]
In this article we will discuss about:- 1. Meaning of Bonds 2. Bond Value 3. Theorems 4. Computation of Future Cash Flows. Meaning of Bonds: Bonds are negotiable promissory notes that can be used by individuals, business firms, governments or government agencies. Bonds issued by the government or public sector companies in India are generally secured. Private sector companies may [...]