• Study Resource
  • Explore Categories
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
Certain U.S. accounting standards have been, and will be, amended
Certain U.S. accounting standards have been, and will be, amended

... Certain U.S. accounting standards have been, and will be, amended to aid in the international convergence process. The process of changing these standards usually involves a short deliberation followed by a vote of the U.S. Congress acceptance of the change by the Internal Revenue Service rejecting ...
Structured Deposit (interest rate linked) - final
Structured Deposit (interest rate linked) - final

... A structured deposit (SD) is essentially a combination of a deposit and an investment product, where the return is dependent on the performance of some underlying financial instrument. Typical financial instruments linked to such deposits include market indices, equities, interest rates, fixed-incom ...
Our World at a Glance
Our World at a Glance

25 Lease Analysis
25 Lease Analysis

... provide a net cash savings in any year, and the dollars saved using the most advantageous method will be invested to yield the firm's cost of capital. Therefore, the weighted average cost of capital is the appropriate opportunity rate to use in evaluating lease-versus-purchase decisions. (2) Tom, on ...
Expected Cash Flow: a Novel Model of Evaluating Financial Assets
Expected Cash Flow: a Novel Model of Evaluating Financial Assets

Chapter 11 - Aufinance
Chapter 11 - Aufinance

... d. A bond selling to yield 11.4 percent where the firm's tax rate is 34 percent. Question 12: (Weighted average cost of capital) The target capital structure for Jowers Manufacturing is 52 percent common stock, 12 percent preferred stock, and 36 percent debt. If the cost of common equity for the fir ...
Lectures 5 - 7
Lectures 5 - 7

rack--FairTax_Impact_on_Investment-blank-3ppg
rack--FairTax_Impact_on_Investment-blank-3ppg

... The FairTax causes the stock market to appreciate. The value of corporate stock or a corporate bond is the present discounted value of the expected future income stream (net of tax) of the stock or bond. Thus, a stock’s value or a bond’s value is a function of two things: The expected future income ...
subject : c 306 business financial management
subject : c 306 business financial management

... five years ago at a cost of $700,000. b. The company will need to use some equipment that it could have leased to another company. This equipment lease could have generated $200,000 per year in after-tax income. c. The new detergent is likely to significantly reduce the sales of the other detergent ...
Investors and Markets
Investors and Markets

... • [Steve Eisman] called Standard & Poor’s and asked what would happen to default rates if real estate prices fell. The man at S&P couldn’t say; its model for home prices had no ability to accept a negative number. “They were just assuming home prices would keep going up”. – Michael Lewis, New York T ...
An enhanced methodology of compiling financial
An enhanced methodology of compiling financial

... FISIM should be compiled on the basis of the difference between market interest rates on loans and deposits and a reference rate as a rate between bank interest rates on deposits and loans. ...
FIN APPRAISAL Agriculture Projects
FIN APPRAISAL Agriculture Projects

... lending rate Equal to lending rate Lower than the lending rate ...
Interest rate
Interest rate

... EXPECTATIONS THEORY: Shape of the yield curve indicates investor expectations about future inflation rates LIQUIDITY PREFERENCE THEORY: Investors are willing to accept lower interest rates on short-term debt securities which provide greater liquidity and less interest rate risk ...
Liquidity ratios
Liquidity ratios

Allianz US Short Duration High Income Bond
Allianz US Short Duration High Income Bond

8th Grade NJ Standards Presentation
8th Grade NJ Standards Presentation

Valuation of Securities
Valuation of Securities

... followed the next year with a dividend of $6.50. Fred's investment plan is to buy Denhart now, hold it for three years and then sell. He thinks the price will be about $75 when he sells. What is the most Fred should be willing to pay for a share of Denhart today if he can earn 10% annually on invest ...
Slide 1
Slide 1

Balance Sheet - Alaska Rural Rehabilitation Corporation
Balance Sheet - Alaska Rural Rehabilitation Corporation

... Personal & recreational vehicles Production livestock ...
Syllabus - Baylor University
Syllabus - Baylor University

... Each investor group has the same amount of money to invest and their total net worth equals the value of all securities. In other words, all the interest income from muni’s as well as all corporate NOI mentioned above must flow through securities purchased by the three investor groups listed above. ...
Weekly Relative Value - Balance Sheet Solutions
Weekly Relative Value - Balance Sheet Solutions

... turns over. Absent velocity of money, QE could be looked at as either ineffective or actually causing a deflationary environment, where capital is hoarded and everyone is too petrified to risk it on productive endeavors. While money consists of many different assets, you can – as a metaphor – think ...
Summary on Financial Markets The three main functions of the
Summary on Financial Markets The three main functions of the

... Advantages of discounted cash flow models: • Easy to calculate. • Widely accepted in the analyst community. • FCFE model is useful for firms that currently do not pay a dividend. • Gordon growth model is useful for stable, mature, noncyclical firms. • Multistage models can be used for firms with non ...
Towards a post-Keynesian consensus in macroeconomics
Towards a post-Keynesian consensus in macroeconomics

Chapter 9
Chapter 9

Ch. 15: Financial Markets
Ch. 15: Financial Markets

... receives an annual interest payment equal to the coupon rate times the maturity value. Yield to maturity • represents the effective interest rate that the bond-holder earns if the bond is held to maturity. Bond price • The price that the bond sells for. This fluctuates over the life of the bond. – * ...
< 1 ... 151 152 153 154 155 156 157 158 159 ... 178 >

Present value

In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of negative interest rates, when the present value will be greater than the future value. Time value can be described with the simplified phrase, “A dollar today is worth more than a dollar tomorrow”. Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant, without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds (the present value) is less than the total amount of money paid to the lender.Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times. The idea is much like algebra, where variable units must be consistent in order to compare or carry out addition and subtraction; time dates must be consistent in order to make comparisons between values or carry out simple calculations. When deciding between projects in which to invest, the choice can be made by comparing respective present values of such projects by means of discounting the expected income streams at the corresponding project interest rate, or rate of return. The project with the highest present value, i.e. that is most valuable today, should be chosen.
  • studyres.com © 2026
  • DMCA
  • Privacy
  • Terms
  • Report