Telstra connects to its NBN future
So there you have it – Telstra has released a high-level summary of the deal it has signed with NBN Co and the Commonwealth on exactly who gets what as the national fibre network is rolled out and the old copper network decommissioned.
The deal is a gargantuan document, comprising eight 'definitive agreements' that work together to set the payments the government will make to Telstra for migrating its customers to the NBN, cutting copper lines and making available its pipes, pits and ducts for an "assumed average 30 year period".
The schedule of payments add up to the $11 billion net-present-value figure expected, with Telstra noting that the low-risk elements of the plan – such as changes to its universal service obligation – use an 8 per cent discount rate to calculate the NPV.
Where elements of risk exist – for example, the possibility that it may have to do substantial work on the infrastructure it is leasing to the NBN Co – a 10 per cent discount rate has been used to calculate the NPV of future payments, to account for Telstra's internal weighted average cost of capital.
Some of the detail of the definitive agreements will never be made public, for reasons of commercial confidentiality.
As expected, Telstra clearly picks up all the risk for delivering its existing infrastructure to NBN Co in useable condition. Overseas experiences with revisiting pipes and ducts that may not have been checked for years suggest there is a threat of some cost blow-outs for Telstra though, given the length of time over which these are opened up to NBN Co, the telco says it does not expect a material hit to next year’s financial accounts – presumably a pattern that will carry forward through the years of the deal.
All shareholders will receive an additional 'explanatory memorandum', including an independent expert’s report, a month before the deal is to be voted on at the October 18 AGM in Sydney.
There are numerous protections built into the agreement for Telstra. It states: "A range of risks and contingencies have been contemplated and provided for in the agreements. For example, the Definitive Agreements provide for NBN Co to pay compensation to Telstra in certain circumstances should it permanently cease the rollout, leaving Telstra with a geographically dispersed copper network.
How To Calculate Future Value - News
Thus it is important to calculate how your investments will fare out in the future and will be its exact value, say 20 years down the line. To calculate the future value of your investments, you have to first determine, what sort of investment strategy
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Present values recognize that a dollar paid or collected in the future is worth less than a dollar today, because a dollar today could be invested and earn interest. To calculate a present value, future amounts are thus reduced using an assumed
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How To Calculate Stock Price? | Shares and Stocks
How To Calculate Stock Price?
Posted by admin as shares and stocks
We all live in a world, where finance has a primary role to play in our lives. Though, it has different shades for every individual; still, its importance remains the same. One of the most important factors in finance is the stock prices. These prices are the rates of the readily available stock of the company for trading. With the help of this piece of information, one gets to know the ability of a particular company to do commerce. After all, it is an essential piece of information that helps anyone interested in making investments in that financial concern. These sorts of details enable the person to focus on the profitable company for buying shares .
A stock price of any company is decided by the market forces of demand and supply. If the stock is a hot buy, there shall be more buyers; hence an increase in price is obvious. Now, one got to understand and learn how to calculate stock price and that too in exact terms, so we have to look up to certain formulas which will show us our path.
If you were to buy a company you would want to know how much cash, assets, and debt they had, along with how much profit they were making. You would also pay attention to the profit that they would be making a few years down the road. It requires an estimated guess, so it is the most difficult part of the calculation.
Finally, once you have estimated the future value of the stock, you can then find the present value of the future stock price that you have calculated based on the estimated ROI and your investment time horizon.
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How To Calculate Future Value - Bookshelf
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Future Value
Future value formula, calculation methods, and interest table of future value factors.
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Future value: Definition from Answers.com
Amount to which an investment will grow at a future time if it earns a specified interest that is compounded annually
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This means that calculating the future value of a stock is an anticipated or desired return and not something you can count on explicitly. With stock history ...