Search results
Results From The WOW.Com Content Network
The haircut values of securities are used to compute the liquidation value of a broker-dealer's assets to determine whether the broker-dealer holds enough liquid assets to pay all its non-subordinated liabilities and to still retain a "cushion" of required liquid assets (i.e., the "net capital" requirement) to ensure payment of all obligations ...
Liquidation value is typically lower than fair market value. [1] Unlike cash or other available liquid assets, certain illiquid assets, like real estate, often require a period of several months in order to obtain their fair market value in a sale, and will generally sell for a significantly lower price if a sale is forced to occur in a shorter ...
In general, "Value of firm" represents the firm's enterprise value (i.e. its market value as distinct from market price); for corporate finance valuations, this represents the project's net present value or NPV. The second term represents the continuing value of future cash flows beyond the forecasting term; here applying a "perpetuity growth ...
When the purchaser of an intangible asset is allowed to amortize the price of the asset as an expense for tax purposes, the value of the asset is enhanced by this tax amortization benefit. [1] Specifically, the fair market value of the asset is increased by the present value of the future tax savings derived from the tax amortization of the ...
A company's net current asset value (NCAV) can be calculated as: Net Current Asset Value (NCAV) = Total Current Assets - Total Liabilities. And a company's market cap is calculated as: Market Capitalization (MC) = Number of Shares Outstanding × Current Price per share If NCAV > MC then the stock is considered undervalued. [3] [4]
Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business.Here various valuation techniques are used by financial market participants to determine the price they are willing to pay or receive to effect a sale of the business.
A bondholder will receive coupon payments semiannually (unless otherwise specified) in the amount of , until the bond matures, at which point the bondholder will receive the final coupon payment and the face value of a bond, (+). The present value of a bond is the purchase price. [2]
This determines the number of days between two coupon payments, thus calculating the amount transferred on payment dates and also the accrued interest for dates between payments. [1] The day count is also used to quantify periods of time when discounting a cash-flow to its present value. When a security such as a bond is sold between interest ...