'Appropriate discount rate' presentation slideshows

Chapter 10

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Risk, Return, Portfolio Theory and CAPM

Risk, Return, Portfolio Theory and CAPM . TIP If you do not understand anything, ask me!. Where does the discount rate (for stock valuation) come from?. So far,. We have taken the discount rate as given.

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Discounted Cash Flow Valuation

Chapter Six. Discounted Cash Flow Valuation. Key Concepts and Skills. Be able to compute the future value of multiple cash flows Be able to compute the present value of multiple cash flows Be able to compute loan payments Be able to find the interest rate on a loan

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Discounted Cash Flow Valuation

Chapter Six. Discounted Cash Flow Valuation. Key Concepts and Skills. Be able to compute the future value of multiple cash flows Be able to compute the present value of multiple cash flows Be able to compute loan payments Be able to find the interest rate on a loan

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How to Value Bonds and Stocks

How to Value Bonds and Stocks. What is a Bond?. A bond is a legally binding agreement between a borrower and a lender. Bond Terminology. Face value (F) or Principal For a corporate bond this is generally $1,000 Coupon rate This is a Stated Annual rate Determines the coupon payment

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Professor Del Hawley Finance 634

Chapter 4. Stock And Bond Valuation. Professor Del Hawley Finance 634. Fall 2003. Valuation Fundamentals. Value of any financial asset is the PV of future cash flows Bonds: PV of promised interest & principal payments Stocks: PV of all future dividends

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Chapter 5: Stock Valuation

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Corporate Finance

Corporate Finance. Class 01 Introduction Daniel Sungyeon Kim Peking University HSBC Business School. Class Outline. Introduction Syllabus Organizational forms Review financial tools Valuation basics Time value of money Inflation. Part 1 Outline. Syllabus Organizational forms.

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Chapter 7 Equity Valuation

Chapter 7 Equity Valuation. What determines the value of stock? Old ideas are still new. Chapter 7 Outline. 7.1 Equity Securities. A corporation will issue an equity security , which is a financial instrument that represents ownership in the corporation.

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Updated: 15 May, 2007 Lecture Notes ECON 622: ECONOMIC COST-BENEFIT ANALYSIS Lecture 12

Updated: 15 May, 2007 Lecture Notes ECON 622: ECONOMIC COST-BENEFIT ANALYSIS Lecture 12. Evaluation of Investments in Education. Economic Evaluation of Education Projects. Educational projects may have many types of components, with benefits measurable in both monetary and nonmonetary terms

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Discounted Cash Flow Valuation

Chapter Six. Discounted Cash Flow Valuation. Chapter Outline. Future and Present Values of Multiple Cash Flows Valuing Level Cash Flows: Annuities and Perpetuities Comparing Rates: The Effect of Compounding Loan Types and Loan Amortization. 0. 1. 2. 3. 7,000. 4,000. 4,000.

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Career Opportunities in Finance

Career Opportunities in Finance. Money and capital markets Investments Financial management. Responsibility of the Financial Staff. Maximize stock value by: Forecasting and planning Investment and financing decisions Coordination and control Transactions in the financial markets

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Capital Budgeting Techniques

Capital Budgeting Techniques. What is Capital Budgeting ?. The process of identifying, analyzing, and selecting investment projects whose returns (cash flows) are expected to extend beyond one year. Project Classifications.

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Fin 4201/8001

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Basics of Spectrum

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THE LOCAL PROPERTY TAX

THE LOCAL PROPERTY TAX. Advantages Disadvantages Proper Use. ADVANTAGES of the PROPERTY TAX I.

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Foundation for Accounting Education 2008 Banking Conference September 25, 2008 Rick Grove

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Multiple owners

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WHAT TO DISCOUNT

WHAT TO DISCOUNT. 1.Only cash flow is relevant. 2. Estimate incremental (after tax) cash flows. 3. Be consistent in treatment of inflation. 4. Recognize project interactions. 10%. MIRR =16.5%. Crossover Point = 8.7%. 1. Estimate the Cash flows. 2. Assess the riskiness of the cash flows.

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