• Study Resource
  • Explore
    • 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
Document
Document

Chapter 11
Chapter 11

... Describe the characteristics of other types of financial assets. List 4 different types of financial asset markets. ...
Balance of Payments Interaction with Key Macroeconomic Variables
Balance of Payments Interaction with Key Macroeconomic Variables

...  Capital account is made up of transfers of fixed assets such as real estate and acquisitions/disposal of non-produced/non-financial assets  Financial account consists of three components and is classified either by maturity of asset or nature of ownership. The three components are  Direct Inves ...
9 Ways to Increase Available Cash - Multi-SWAC
9 Ways to Increase Available Cash - Multi-SWAC

Farm Business Mng Part1 Test/Key
Farm Business Mng Part1 Test/Key

1. Without the participation of financial intermediaries in financial
1. Without the participation of financial intermediaries in financial

... 31. Kudrow stock just paid a dividend of $4.76 per share and plans to pay a dividend of $5 per share next year, which is expected to increase by 3 percent per year subsequently. The required rate of return is 15 percent. The value of Kudrow stock, according to the dividend discount model, is $______ ...
1) - Georgia State University
1) - Georgia State University

... a decrease in the rate of inflation c) inflation being unchanged d) inflation and currency exchange value are not related ...
Conflict of Interest
Conflict of Interest

The 10-Year Yield Is A Whopping 4 Standard
The 10-Year Yield Is A Whopping 4 Standard

The Term Structure of Interest Rates
The Term Structure of Interest Rates

...  s-t demand > supply--- Price increases for s-t securities and their return decreases  have an upward sloping curve. ...
Open Economy IS/LM Model
Open Economy IS/LM Model

Cost of Capital
Cost of Capital

1 - Needham
1 - Needham

... 2. You want to have $6000 in 7 years. You currently have $4000. At what interest rate, compounded semiannually, must you invest? 3. You invest some money with interest compounded weekly. After 5 years you have $4500 and after 9 years you have $7800. What is the interest rate, and how much did you in ...
No Slide Title
No Slide Title

... Refers to three factors: •Extra earning power – A company may have the ability to earn a higher rate of return on assets; the value of these assets will be higher than their book value. •Intangible assets – Many assets can’t be quantified on the balance sheet; for example a company’s brand and its ...
Manager`s Comment Performance Total Return
Manager`s Comment Performance Total Return

BridgeForce template
BridgeForce template

Is Inflation Around the Corner?
Is Inflation Around the Corner?

money
money

Short Duration Income Y Share Fund Fact Sheet
Short Duration Income Y Share Fund Fact Sheet

... sensitive the fund is to shifts in interest rates. Standard deviation measures how widely a set of values varies from the mean. It is a historical measure of the variability of return earned by an investment portfolio over a 3-year period. Consider these risks before investing: Putnam Short Duration ...
Banking
Banking

...  What do you think banks will be like in 15 ...
CASE 2
CASE 2

... (2) If Moogy Ellis’s predictions are correct, what will be the value per share of Ryan’s stock if the firm maintains a constant annual 13% growth rate in dividends per share over the next 2 years and 9.5% thereafter? (Note: Use the new required return here.) Answer e(2) Stock Value = {(2.05)*(1.13)/ ...
DOC - JMap
DOC - JMap

... 4.5% interest compounded annually. Option B will pay him 4.6% compounded quarterly. Write a function of option A and option B that calculates the value of each account after n years. Seth plans to use the money after he graduates from college in 6 years. Determine how much more money option B will e ...
Don`t confuse numbers with measurements
Don`t confuse numbers with measurements

AP Macro 4-1 Money and Banking
AP Macro 4-1 Money and Banking

... The Barter System: goods and services are traded directly. There is no money exchanged. Problems: 1. Before trade could occur, each trader had to have something the other wanted. 2. Some goods cannot be split. If 1 goat is worth five chickens, how do you exchange if you only want 1 chicken? Example: ...
The Dividend Controversy
The Dividend Controversy

...  LoDiv cash flows are more valuable.  Demand for LoDiv cash flows increases. ...
< 1 ... 144 145 146 147 148 149 150 151 152 ... 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 © 2025
  • DMCA
  • Privacy
  • Terms
  • Report