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• Fisher’s rate and ranking of investment projects

  5-22

  Maria Illes

  Views:

  185

  This paper seeks to explain the formation mechanism and economic relationships of Fisher’s rate and Fisher’s intersection. The Fisher’s rate is a discount rate at which the net present values of two investment projects are equal. This information is especially important when the ranking happens according to the net present value. However, net present value is not suitable for ranking. After removing distorting effects from the net present value method (and assuming equal required rate of return) this ranking list leads to the same ranking as the internal rate of return. Consequently, the knowledge of the Fisher’s rate in business practices is irrelevant. The Fisher’s rate and the Fisher’s intersection can only have theoretical significance. The study works out the causal relationships that are necessary for existence of the intersection. Their analyses can give a better understanding of the content background of the net present value method.

  Journal of Economic Literature (JEL) code: M21

• University Ranking Lists and Mirror Images - as Prospective Students Make Their Choice

  78-91

  Gyongyi Csuka

  Mihaly Szivos

  Views:

  121

  The paper is based on a survey carried out by the authors, which aimed, on the one hand, at specifying the extent to which would-be students know the rankings of universities and take them into consideration when choosing university faculties, and, on the other hand, at revealing the role played by other factors in their decisions. The majority of would-be students know the rankings of universities but these have not became an important factor in the decision processes. To have good lecturers and professors, to acquire useful knowledge, and to obtain a job with their degree are considered by would-be students as crucial factors. They try to get information from several sources and the Internet has become the most important one, which they use routinely and with skill. On the other hand, it can be proved that they would like to rely on more customized information sources as well.

  JEL classification: Z13

• The Actual Experiences of SME Lending

  70-96

  Zsolt Zsombori

  Views:

  270

  This paper is intended to show the quantitative research results of an actual survey conducted within 82 active SMEs in Borsod-Abaúj-Zemplén County. The sample of participants was selected by a two-step combined sampling method resulting in a nonrepresentative, but still useable data collection. The survey especially focused on identifying and ranking SME pressing factors, identifying and ranking credit prohibiting factors from the viewpoint of SMEs, identifying the actual financial preferences of SMEs with special attention to subsidized credits and non-refundable subsidies. It gives actuality to most of the aforementioned questions that currently even the Central Bank of Hungary pays attention to boost the crediting activity by its Funding for Growth Schemes (FGS).

  Journal of Economic Literature (JEL) codes: G30, G32, G39