Sentences with phrase «future cash flows depends»

First, since the present value of future cash flows depends on interest rates, the cost of the liability is sensitive to interest rate changes.

(A present value is a single number that expresses a flow of current and future payments in terms of an equivalent lump sum paid today; the present value of future cash flows depends on the discount rate that is used to translate them into current dollars.)

Not exact matches

With respect to stocks, the future value of a company depends on the evolving state of a company's cash flows as they report them from quarter to quarter.

This technique is especially useful for callable and extendible / retractable bonds, whose cash flows depend on future interest rates, or are said to be «path dependent.»

While bonds and GICs help provide stability in a portfolio and hopefully generate future cash flow, selecting a suitable combination of these interest - paying investments will depend on your individual needs including liquidity, tax efficiency and returns.

«Because these items have no ascertainable fundamental value, generate no present or future cash flow, and depend for their value entirely on buyer whim, they clearly constitute speculations rather than investments.»