FINC 400 1404B 04
December 3, 2014
PHASE 3 DISCUSSION BOARD
Finance has certain principles that are applied to it; these three principles are time value
of money, risk of return principle, and the valuation. The valuation principle
Individual Project 3
Valuation of Financial
Professor: Jeffrey Karlberg
This should be a useful general guide):
1. AAA - Highest quality, with the least likelihood of default.
The Discounted Cash Flow (DCF) is a method of valuation used to give an estimate for the attractiveness
of investment opportunity. The analysis uses future free cash estimations and discounts them to come to
present value estimate. If the DCF is higher th
The yield of a bond is, roughly speaking, the return on the bond. The yield is expressed as an
annual percentage of the face amount. However, yield is a little more complicated (and therefore
more useful) than the coupon rate. There are several different
Time Value of Money
The time value of money impacts business finance, consumer finance, and government finance.
Time value of money results from the concept of interest.
This overview covers an introduction to simple interest and compound interest, illust