Value and Capital Budgeting

Time value of money

Future value and compounding

FV (rn) = (1+r)n*S

Present value and discount

PV(r,n) = s/*(1+r)n

Multple cash flow

What is the present value of the company?

Annuities

PV(C,r) = C/r

PV of an ordinary annuity то же самое что предыдущая но быстрее

A(C,r,n) = C/r* (1- 1/(r+1)n)

Growing perpetuity

Net Present Value

Why NPV is the only…

HOW TO DISCOUNT FUTURE VALUE

Risk Premium

Rate of return

Portfolio weight

Return of portfolio using weight !

Short Sell

Short Sell Return

Slide 32 33 (!) Portfolio with2 -3 securities

Ew=1=100 %
CAPM model

Beta

CAPM implies that

Portfolio beta

The security Market Line

Multiple questions 10 questions

Section 4

Conceptions

Market efficiency

How leverage affects return

Gordon Model

Bond

Bond Pricing 63

Spot rate

Future contracts

F = S * (1+rf)T slide 19 20 22

The put call parity relationship

C = S – k/(1+r)T + P

Slide 54