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The definition of reinvestment assumption is an assumption made concerning the rate of return that can be earned on the cash flows generated by capital budgeting projects. The cash flow can be interest, earnings, dividends, or rent.
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What is IRR reinvestment rate assumption?
The IRR reinvestment rate assumption is the mistaken assumption that the IRR of a project implicitly assumes that all positive cash flows from the project that occur in periods before the end of the project will be reinvested at the rate of IRR per period until the end of the project.
What is the definition of reinvestment?
ReinvestmentUsing dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.Viper1
Dividend reinvestment tax free?
no, they are not tax free. The dividends are taxed in the year paid. The dividend reinvestment is a purchase of stock just as if you used cash. You have to track every single purchase transaction of stock from every reinvestment to keep track of the cost basis of each stock, so as to cost it out when you sell. Motley fool has some nice info on this
What are the advantages of reinvestment rate risk over interest rate risk?
B
What is a sales assumption?
Sales assumption is an approximate figure of sales expected to occur in a particular time period.
What is the problem with reinvestment rate assumption?
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What is IRR reinvestment rate assumption?
The IRR reinvestment rate assumption is the mistaken assumption that the IRR of a project implicitly assumes that all positive cash flows from the project that occur in periods before the end of the project will be reinvested at the rate of IRR per period until the end of the project.
How does the reinvestment rate assumption affect the NPV versus IRR conflict?
Apparently the NPV and IRR are methods to obtain capital budgets. The reinvestment rate assumption affects both methods because it is what determines now much incoming cash flow is reinvested into project.
What is the definition of making an assumption from observations?
what is the difference between an observation and an assumption
What are the criticism on equivalent yield in valuation?
Critics argue that equivalent yield, which is calculated using the reinvestment rate assumption, may not reflect the actual reinvestment opportunities available. Additionally, it assumes that coupon payments can be reinvested at the equivalent yield, which may not always be achievable in practice. Lastly, equivalent yield does not account for the risk associated with reinvestment, potentially leading to inaccurate valuation results.
Assumption that nothing but the price of a good will change istha definition for?
the assumption that nothing but the price of a good will change
What is the definition of Enabling assumption?
Good luck with your writting Ryan
Definition of planning premises?
all the assumption of planning is premises...
Where can you find details of the American Recovery and Reinvestment Act?
You can find details of the American Recovery and Reinvestment Act at Recovery.gov.
What is the definition of reinvestment?
ReinvestmentUsing dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.Viper1
What is promoted by the Community Reinvestment Act?
These laws include the Community Reinvestment Act, which promotes community credit needs.
Which accounting assumption assumes that all accounting information is reported monthly or yearly?
By definition the time period assumption presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods. Answer is Time period assumption
