uses? 8. What is workday and WORKDAY.INT functions in Excel? What are its uses? 9. What is Net Present Value? How do NPV and XNPV function work in Excel? What are its uses? 10. What is internal rate of return (IRR)? How do IRR, XIRR, and MIRR work in Excel? What are its uses? 11. What is present value? How does PV function work? What are its uses? 12. What is Future Value? How does FV function work? What are its uses? 13. Write down the functions of PMT, PPMT, IPMT. How can you
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6- 1 6- 2 Topics Covered Stocks and the Stock Market Book Values, Liquidation Values and Market Values Valuing Common Stocks Simplifying the Dividend Discount Model Growth Stocks and Income Stocks Market Efficiency (i.e., no free lunches on Wall Street) Market Anomalies and Behavioral Finance McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved Terminology of Stocks Public Common Stock - Ownership shares in a publicly held corporation. Primary
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required tonnage of shipping capacity to fulfill the various contracts held with Superior. Although the agents tried to arrange for ships to arrive at Thunder Bay in a steady stream, the vagaries of lockage transfer times in the Seaway resulted in quite variable arrival times, at times forcing arriving ships to anchor when both wharfs were busy. This resulted in SGE having to incur demurrage charges at a rate of $2000 per day. Mike Armstrong, manager of port facilities for SGE, had just learned that
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preliminary set up features of your HP 12C. You should understand these keystrokes before you begin work on statistical or Time Value of Money (TVM) functions. Please note that your calculator’s sign convention requires that one of the TVM inputs ([PV], [FV], or [PMT]) be a negative number. Intuitively, this negative value represents the cash outflow that will occur in a TVM problem. 1. To set the number of decimal places that show in your calculator display screen: < f > → {Desired # of decimal places}
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applying them and ascertaining the various financial details of the companies. At last the team work and effort showed by each group member made this project a success. OBJECTIVE To calculate and interpret the value of Beta calculated using the returns of selected companies of Chemicals and fertilizer industry of India and deriving at the conclusion as to which company to invest in considering the risk taking
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asset's fair value less costs to sell (sometimes called net selling price) and its value in use where: fair value is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable, willing parties, and value in use is the discounted present value of the future cash flows expected to arise from the continuing use of an asset, and from its disposal at the end of its useful life. Determining Recoverable Amount: * If fair value less costs to sell or value in use
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CT1 – P C – 09 Combined Materials Pack ActEd Study Materials: 2009 Examinations Subject CT1 Contents Study Guide for the 2009 exams Course Notes Question and Answer Bank Series X Assignments* *Note: The Series X Assignment Solutions should also be supplied with this pack unless you chose not to receive them with your study material. If you think that any pages are missing from this pack, please contact ActEd’s admin team by email at ActEd@bpp.com or by phone on 01235 550005. How to
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Time value of money problems 1) An annuity makes ten annual payments of $1000 each, starting 3 years from now. What is the present value if the discount rate is 10%? 2) If the discount rate is 8% per year, what is the present value of $1500 received every third year forever (the first payment occurs three years from now)? 3) A perpetuity makes payments of $500 every second year, with the first payment coming one year from today. If the discount rate is 5%, what is the present value of the perpetuity
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Chapter 4 Questions (4-2) What is an opportunity cost rate? How is this rate used in discounted cash flow analysis, and where is it shown on a time line? Is the opportunity rate a single number that is used to evaluate all potential investments? An opportunity cost rate is the rate of return you would earn on an alternative investment of similar risk if you don’t invest under consideration. (4-5) Would you rather have a savings account that pays 5% interest compounded semiannually or
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attractiveness of a bond. We begin with an explanation of how to compute the yield on any investment. COMPUTING THE YIELD OR INTERNAL RATE OF RETURN ON ANY INVESTMENT The yield on any investment is the interest rate that will make the present value of the cash flows from the investment equal to the price (or cost) of the investment. Mathematically, the yield on any investment, y, is the interest rate that satisfies the equation. ------------------------------------------------- P =
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