Examlex
If the retail price of a stock issuance is $17.50 and the syndicate members' price is $15.50, the total spread is 11.4%.
The percentage spread must be calculated between the retail price and the price paid to the issuer, rather than within the syndicate.
Net Present Value
A method of valuing a series of future cash flows by discounting them back to their present value using a specified rate of return.
Working Capital
Working Capital is the difference between a company's current assets and current liabilities, indicating short-term financial health.
Discount Rate
This refers to the rate used in discounted cash flow assessments to figure out the current value of cash flows expected in the future.
Net Present Value
The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of investments.
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