EXAM 2 study guide.docx - Exam 2 Study Guide Time Value of Money \u25cf Explain why time value of money is important \u25cf Explain and calculate the future

EXAM 2 study guide.docx - Exam 2 Study Guide Time Value of...

This preview shows page 1 out of 1 page.

Exam 2 Study Guide Time Value of Money Explain why time value of money is importantExplain and calculate the future value of a lump sumExplain and calculate present value of a lump sumAnnuities Define the concept of an annuityDistinguish between a regular (or ordinary) annuity and an annuity dueExplain and calculate the future value of an annuityExplain and calculate the present value of an annuityExplain and calculate a perpetual annuityBond ValuationExplain what a bond is and the various types of bondsDescribe the information found in a bond’s indentureDiscuss the inverse relationship between bond prices and interest ratesCalculate the price of a bond using the bond value formulaCalculate the return on a bond using the approximate yield to maturity (AYTM) formulaExplain the relationship between the term structure of interest rates and the yield curveStock ValuationExplain the rights of common stockholdersDescribe the features of shares of preferred stockExplain the differences between primary and secondary marketsCalculate the value of a share of preferred stockCalculate the expected return of a share of preferred stockCalculate the value of a share of common stock using the constant growth rate modelCalculate the expected return of a share of common stockCalculate the value of a share of common stock using the supernormal growth rate model

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture