Continuously compounded rate of return and Dry powder: Difference between pages

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The more frequently a nominal annual rate of interest is compounded within a given time period, the greater the total interest accrued by the end of the period.  
1.  


Continuous compounding takes this process to its theoretical limit by assuming that the nominal annual interest is calculated and compounded continuously at the given continuously compounded % rate.
Dry powder means cash or near-cash kept on hand by an organisation to meet future financial obligations or other expenditure.


2. ''Mergers & acquisitions (M&A)''.
In context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions.




== See also ==
== See also ==
* [[Compounding effect]]
* [[Near cash]]
* [[Effective annual rate]]
* [[Reserves]]
* [[Nominal annual rate]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Cash_management]]

Revision as of 10:38, 19 July 2019

1.

Dry powder means cash or near-cash kept on hand by an organisation to meet future financial obligations or other expenditure.


2. Mergers & acquisitions (M&A).

In context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions.


See also

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