Best answer
Many factors can influence the discount rate e.g. Monetary policy of central bank, fiscal policy (loans and investments interest, debentures and treasury bills interest), inflation, capital structure, exchange rate, gross domestic product value [8, 9] and it is hard to expect them to be constant during the whole period ...
What factors affect EPS?
In summary, the key fundamental factors are:
- The level of the earnings base (represented by measures such as EPS, cash flow per share, dividends per share)
- The expected growth in the earnings base.
- The discount rate, which is itself a function of inflation.
- The perceived risk of the stock.
What factors affect exchange rates?
Factors which influence the exchange rate. Exchange rates are determined by factors, such as interest rates, confidence, the current account on balance of payments, economic growth and relative inflation rates.
How does discount rate affect IRR?
The IRR equals the discount rate that makes the NPV of future cash flows equal to zero. The IRR indicates the annualized rate of return for a given investment—no matter how far into the future—and a given expected future cash flow.
How does blood volume affect heart rate?
When heart rate or stroke volume increases, cardiac output is likely to increase also. Conversely, a decrease in heart rate or stroke volume can decrease cardiac output. What factors regulate increases and decreases in cardiac output? Factors affect cardiac output by changing heart rate and stroke volume.
What are the factors that affect osmosis?
The factors affecting the rate of osmosis include:Pressure.Temperature.Surface Area.Water Potential.Concentration gradient.
Does 1 speeding ticket affect insurance rates?
According to a CarInsurance.com study, the average car insurance policy in California costs $1,783 a year. If you have a clean driving record, then most California companies offer a discount. ... One speeding ticket could remove that discount and increase your rate by 34%.
What factors affect the swap rate?
Previous research indicates that the main factors affecting interest rate swap spreads are the interest rate level, the slope of the yield curve, interest rate volatility, liquidity risk, and default risk (Lekkos and Milas (2001) , Fang and Muljono (2003), Asgharian and Karlsson (2008), Huang et al.
What are 4 factors that affect population growth?
Population growth is based on four fundamental factors: birth rate, death rate, immigration, and emigration.
What factors affect NPV?
Factors Affecting Net Present Value. The major factors affecting present value are the timing of the expenditure (receipt) and the discount (interest) rate. The higher the discount rate, the lower the present value of an expenditure at a specified time in the future.
What factors affect oxidation?
A number of factors affect the oxidation rate, including temperature, pressure, crystal orientation, oxygen source (oxygen or water) and impurity doping.
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