Get a life mate. And maybe spend this weekend with your loved ones or doing hobbies, rather than arguing with people on the internet. We don't need a repeat of last weekend.
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Get a life mate. And maybe spend this weekend with your loved ones or doing hobbies, rather than arguing with people on the internet. We don't need a repeat of last weekend.
So Bull, if I say that everyone runs at a different pace but nobody runs at 75kph, is this a contradiction? If so, how?
If I say everyone uses different rates but nobody uses the overnight rate or their prediction of where it will peak, is this a contradiction? If so how?
Yes this is one way of doing it, the other is opportunity cost of risk free return for long money.
Using your hurdle rate will give you the investment basis of what you need to pay to obtain your desired returns.
This is hot of the press and an incredible explanation of what actually drives returns over the long term.
https://www.morganstanley.com/im/pub...?1665064386283
'A company creates value when the present value of the cash flowsfrom its investments are greater than the cost of the investments.In other words, one dollar invested in the business becomes worthmore than one dollar in the market. Discounting future cash flowsmakes sure the investment is attractive relative to the capital’sopportunity cost, the return on the next best alternative.
Here is one way to think about it. A company invests $10,000 andthe opportunity cost is 8 percent. In the first scenario, theinvestment generates cash flow of $500 per year into perpetuity,which equals a value of $6,250 ($500/.08). This fails the one dollartest and illustrates why positive earnings do not always equate tovalue creation.
In the second scenario the business earns $800 in cash flow peryear, making the investment worth exactly the cost of $10,000($800/.08). This business is value neutral. Note that growth addsno value in this case. Growth is like the speed setting on a treadmill.You can turn it up or down but you are going nowhere.
In the final scenario, the firm produces cash flow of $1,100. Thispasses the one dollar test with flying colors, as the $10,000 is worth$13,750 ($1,100/.08). Growth is good. The faster the company cangrow while sustaining these returns, the more value it creates'.
With those job numbers in US Fed won’t be pivoting for a while
Possibly means Orr won’t be pivoting for a while as well …..we’ll possibly see more media about Orr causing unnecessary stress on NZ households and he should stop being so unkind
Max Rashbrooke: Sacrificing 50,000 workers on the altar of inflation is madness
https://www.stuff.co.nz/opinion/1301...ion-is-madness