Banks must measure the loss arising from counterparty default in order to achieve Advanced Internal Ratings-Based (IRB) compliance under the proposed Basel II minimum regulatory capital framework. The discount rate to be used on cash received post-default is not agreed upon amongst practitioners and banking supervisors. We review alternative extant proposals and develop a framework for choosing...

to achieve the optimal model for capital asset pricing has always been a central issue in studies of the financial field. in this study we consider fama and french three-factor model augmented by the pastor and stambaugh (2003) liquidity risk factor. unlike most previous studies in this model, stock level beta is allowed to vary with firm-level size and book-to-market value. to verify the above...

During times of inflation, the use of the last-in, first-out (LIFO) method of inventory valuation has the effect of lowering the reported earnings by excluding inventory holding gains from this number. Current income tax payments due on the reduced earnings are also lower. Taxes payable on inventory holding gains, therefore, are postponed until some future period when the inventory is liquidate...

Until now single values of IRR are traditionally used to estimate the time value of cash flows. Since uncertainty exists in estimating cost data, the resulting decision may not be reliable. The most commonly cited drawbacks to using the internal rate of return in evaluatton of deterministic cash flow streams is the possibility of multiple conflicting internal rates of return. In this paper we p...

in this study, in order to consider the effects of cash flow fluctuations on project profitability, the new risk kind indicators are proposed to assess projects risk. firstly, project cash flow calculates on the basis of cost and revenue data in an lng project. then distribution curves of two variables, oil price and interest rate of foreign loans, are utilized to determine distribution curve o...

parameters in a bank’s risk-rating system that impact facility ratings, approval levels, and the setting of loss reserves, as well as developing credit capital underlying risk and profitability calculations. LGD can be measured as either the net charge-off rate (accounting LGD), or the present value of cash losses (economic LGD), with respect to the initial book value of a defaulted obligation....

Penelitian ini bertujuan untuk menguji dan menganalisis pengaruh free cash flow kebijakan dividen terhadap nilai perusahaan yang diukur dengan price to book value (PBV) pada sub sektor Property Real Estate terdaftar di Bursa Efek Indonesia tahun 2017-2020. Populasi dalam penelitian sebanyak 77 menggunakan teknik penentuan sampel yaitu purposive sampling diperoleh 7 perusahaan. Metode analisis d...