Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Difference between an annuity and[…]
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Bond-Price Sensitivity,”If coupon rate = discount rate, bond will sell for par valueIf coupon rate > discount rate, bond will sell for a premiumIf coupon rate < discount rate
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Read moreAfter-tax cost of debt
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Read morePV of a Perpetuity,”PMT/i%Ex) What should you be willing to pay in order to receive $10,000 a year forever, at 8%?10,000/.08 = $125
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.PV of a Perpetuity,”PMT/i%Ex) What[…]
Read morePrices vs. Yields,”INVERSE RELATIONSHIP!If market interest rates increase, the price of existing bonds will fall.If market interest rates fall
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Prices vs. Yields,”INVERSE RELATIONSHIP!If market[…]
Read more“The Capital Asset Pricing Model (CAPM), Internal cost of equity”
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“The Capital Asset Pricing Model[…]
Read moreUneven cash flows,”Discount or compound each individual cash flow, then sum totals.On calculator: select npv function from Finance menu.npv (rate, initial outlay, {cash flow 1, cash flow 2, cash flow 3
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Uneven cash flows,”Discount or compound[…]
Read moreRelationship between Equity and Stock
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Relationship between Equity and Stock[…]
Read moreDeferred Annuities,”A standard annuity whose first payment is deferred to some time in the future.When calculating PV
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Deferred Annuities,”A standard annuity whose[…]
Read moreCommon Stock vs. Preferred Stock,”COMMON STOCK:Variable return security (dividends may increase/decrease at management’s discretion), investors become partners, investors have right to vote, has the lowest position in terms of payoutPREFERRED STOCK:hybrid security (resembles both equity and debt), payments are fixed, investors are non-voting and non-participating
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Common Stock vs. Preferred Stock,”COMMON[…]
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