Home › Finance Formulas › National Income Formula › Macro Economics Powerpoint Slides National Income Formula Presentation And Get Copy Your Email Gdp Computer Average Gnp Calculation Gross Domestic Product Nnp Approach Transfer

Finance Formulas / July 18, 2018 / Natalia Atkins

Present value is the discounted sum of future cash flows each future cash flow is multiplied by a carefully selected number less than one, before being added together. The multiplication factor accounts for the way the value of money is discounted over time. The time-based value of money captures the intuition that everyone would prefer to get paid sooner rather than later but would prefer to pay later rather than sooner. The multiplication factors depend on the discount rate chosen (10% per year as an example) and the length of time before each cash flow occurs. For example, money received ten years from now must be discounted more than money received five years in the future.

Stockholders' equity, also referred to as shareholders' equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm's total assets less its total liabilities or alternatively as the sum of share capital and retained earnings less treasury shares.

73 out of 100 based on 997 user ratings

We Also Think Youâ€™ll Like

Knowingpains

Category

© 2018 Knowingpains. All rights reserved