Capital Budgeting Analysis

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Methods of Payment in International Trade

Do you know about methods of payment in international trade? Payment is critical for every business. However, payment for international transaction is quite different from obtaining money from local sources.…

Why people invest in stocks?|Capital Budgeting Techniques

Why people invest in stocks? Investors buy, hold and sell financial assets to earn returns on them. Within the spectrum of financial assets, why do some people buy common stocks…

Difference between Letter of credit and Drafts

Difference between Letter of Credit and Drafts Difference between two payments methods of international trade – Letter of credit and Drafts are given below: (more…)

Weighted Average Cost of Capital

Weighted Average Cost of Capital Weighted average cost of capital Weighted average cost of capital (WACC) means to the average amount of minimum rate of return after paying the tax…

Fixed cost Vs Variable cost

Fixed cost Vs Variable cost Companies generally have to bear cost of production. It can be divided in to two parts specifically. There are known as variable cost and fixed…

FOB shipping Vs FOB destination

FOB shipping Vs FOB destination FOB stands for Free on Board In case of international trade, terms like FOB or Free on board shipping and FOB destination are noticed. It…

Book Value vs Market Value

Book Value vs Market Value For the purpose of investment, it is important to know the difference between book value and market value. There is no doubt in the fact…

Opportunity Cost and Sunk Cost

Difference between Sunk Cost and opportunity Cost Basically, sunk cost is money that has been spent already. On the other hand, opportunity cost is certain amount of money from which…

Difference between Red Clause LC and Green Clause LC

Difference between Red Clause LC and Green Clause LC2020-08-31T06:44:44+00:00 No Comment

What is Red Clause LC? A Red Clause LC is a documentary credit with a special clause incorporated in it, authorizing the advising bank or the conforming bank to make…

Control and Monitoring of Exchange Position

Control and Monitoring of Exchange Position2022-04-24T00:43:33+00:00 Capital Budgeting Techniques No Comment

Control and Monitoring of Exchange Position As a matter of policy each bank establishes "limits" for various case a bank has more centers dealing in foreign exchange, the limit is…

Risks Associated with Foreign Trade

Risks Associated with Foreign Trade2022-04-24T00:25:22+00:00 Capital Budgeting Techniques No Comment

Foreign Trade Risks Why is foreign exchange risk so important today? there are three broad reasons: i. The growth in international trade and financing. ii. The increased magnitude of exchange…

SWOT Analysis of Law company

SWOT Analysis of Law company2022-01-29T19:16:20+00:00 Market Analysis No Comment

Law company SWOT Analysis Strengths The main strength of the firm is its human capital. The firm is having staff of over 300. Strong organizational structure. Partners and senior solicitors…

Month-end Revaluation – Net Spot Position and Forward Position

Month-end Revaluation – Net Spot Position and Forward Position2022-01-22T14:49:01+00:00 Capital Budgeting Techniques No Comment

The calculation of profit or loss on net foreign exchange position is carried out monthly through what is termed as month-end revaluations. A simple but effective method to calculate separately…

CONTROL AND MONITORING OF EXCHANGE POSTIION

CONTROL AND MONITORING OF EXCHANGE POSTIION2022-01-22T14:36:08+00:00 Capital Budgeting Techniques No Comment

As a matter of policy each bank establishes "limits" for various case a bank has more centers dealing in foreign exchange, the limit is allocated to each center. Such limits…

What is overbought position and oversold position?

What is overbought position and oversold position?2022-01-05T18:12:57+00:00 No Comment

OVERSOLD POSITION Where the liabilities and sales of a bank in a particular foreign currency exceed the assets and purchase of the same currency the bank is said to have…

Fixed Forward Contract and Option Forward Contract

Fixed Forward Contract and Option Forward Contract2022-01-05T18:05:03+00:00 No Comment

What is a fixed forward? Fixed Forward is a type of forward exchange contract which provides for taking up or delivery of the foreign currency on a fixed data in…

Difference Between Overbought and Oversold

Difference Between Overbought and Oversold2021-01-03T16:05:22+00:00 No Comment

Overbought and Oversold Overbought means that a bank’s assets and purchases of a particular foreign currency exceed its liabilities and sales of that currency. Where oversold means that a bank’s…

Difference Between Interest rate and Exchange rate

Difference Between Interest rate and Exchange rate2021-01-03T16:07:39+00:00 No Comment

Interest rates and Exchange rates The question of interest rate arises when currencies are borrowed or lent; whereas exchange rates are involved when different currencies are being bought or sold.…

Difference Between Hedging and Speculating

Difference Between Hedging and Speculating2022-01-22T14:57:24+00:00 No Comment

Hedging and speculating Hedging means avoiding or covering foreign exchange risk. The need for hedging arises because exchange rates fluctuate continuously. Accordingly, individuals, companies and banks who expect to make…

Difference between Pips and Points

Difference between Pips and Points2020-06-25T03:45:36+00:00 No Comment

Pips & points: A point is a unit of decimal, the fourth place to the right of the decimal () whereas a pip is the fifth place to the right…

How to register Domain Name?

How to register Domain Name?2020-06-12T04:46:48+00:00 Home based Business No Comment

Online Beginners Start small and spend less. Choose Your Domain Name Every website starts with a great domain name. What is a domain name? What is a TLD? Think of…

Types of Options

Types of Options2020-04-04T06:52:25+00:00 Capital Budgeting Techniques No Comment

There are two basic types of options: Put Option and Call Option CALL OPTION: This option gives the buyer the right to purchase or “call away” a specified amount of…

Foreign Currency Options

Foreign Currency Options2020-04-04T06:43:48+00:00 Capital Budgeting Techniques No Comment

We have examined the two main methods of covering an exchange rate fluctuations risk The traditional forward exchange contract, andThe currency futures contract. An option is an agreement between two…

Buying and Selling Foreign Currency Future

Buying and Selling Foreign Currency Future2020-04-16T18:06:10+00:00 Capital Budgeting Techniques No Comment

Mechanics of buying and selling foreign currency future Foreign Exchange Futures: Let us assume that in January an importing firm requires Swiss Franc 125,000 in three-month time. It purchases a…

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