Multiply the EBITDA--which Rust calls "the nominal cash flow
of the business"--by a factor between 3.
First, the coupon payment for the conventional Treasury security, C, in the first term of equation (8), is a nominal cash flow that investors expect will compensate them for inflation via the Fisher hypothesis (and potentially for the taxation of inflation under the Darby and Feldstein framework).
The right-hand side of the equation can be interpreted as the present value of all after-tax nominal cash flows discounted by the after-tax nominal yield that provides the bond's price.
The town's solid waste system remains fiscally sound and evidenced in the strong demand for electricity produced by Huntington's waste-to-energy facility, along with nominal cash flow
savings from a 1997 refunding of the bonds sold to construct the facility, eliminating the need for general fund subsidy payments.
Moreover, strong demand for electricity produced by Huntington's waste-to-energy facility, along with nominal cash flow
savings from a 1997 refunding of the bonds sold to construct the facility, have eliminated the need for general fund subsidy payments.
Reduction of the nominal cash flows
(income) will fuel economic slowdown, reduce business activities, tighten the debt problem gradually creating a banking crisis, says the economist.
This makes it a little tougher to match inflation-adjusted cash flows as efficiently as we matched the nominal cash flows
A conventional bond's nominal cash flows
are known in advance, so the nominal yield-to-maturity is calculated easily.
Thus real cash flows should be discounted at a real discount rate or nominal cash flows
should be discounted at a nominal rate.