Interest Rates

  • Best Use and Option Analysis of Land Value

    To determine the intrinsic value of development land, the Highest and Best Use Analysis technique is employed. Naturally, the intrinsic value of development land is derived from the value of the building that will be constructed on it. Based on the anticipated selling price of the building and the cost of construction, we can estimate…

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  • Cross-Border Forecasts

    Subsidiary companies operating in another country use the local currency. Therefore, their evaluation requires special considerations. In this entry, I will discuss forecasting cash flows for a subsidiary company operating in another country. There are two approaches: Regardless of which method is used, the final result should be the same. To achieve the same result…

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  • Interest Rate Factors

    Interest Rate Factors

    Factors Determining the Interest Rate on a Loan/Bond: i (j) = f (IP, RIR, DRPj, LRPj, SCPj, MPj) Where, Source: Financial Markets and Institutions – by A. Saunders, M. Cornett & O. Erhemjamts

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