Chapter Ten: Bonds and Stocks: Characteristics and Valuations
Bonds and Stocks: Characteristics and Valuations
A natural application of the time value of money principles is stock and bond valuation. Students
are familiar with t
Chapter Twelve: Financial Return and Risk Concepts
Financial Return and Risk Concepts
This chapter on financial return and risk is a fitting capstone to Part 2s discussion of
investments. It discusses basic tenets that lie at th
Chapter Two: Money and the Monetary System
Money and the Monetary System
The monetary system plays an important role in the operation and development of the
financial system. This chapter describes the monetary system of the Unit
Chapter Thirteen: Business Organization and Financial Data
Business Organization and Financial Data
Our discussion of business finance begins with an overview of the forms of business
organization (proprietorship, partnership, a
Chapter Eight: Interest Rates
Lenders charge an interest rate on money they loan to individuals and businesses.
Borrowers pay an interest rate on money lent to them for a specified time period.
Interest rates are d
Chapter Nine: Time Value of Money
Time Value of Money
Money can increase or grow over time if we can save or invest it and we are paid a return on
the use of our money by others. We begin the chapter with examples of simple inter
Chapter Four: Federal Reserve System
Federal Reserve System
A well-developed central banking system is essential to a well functioning financial system.
Money must be easily transferred from geographical areas that have excess mo
Chapter Three: Banks and Other Financial Institutions
Banks and Other Financial Institutions
Financial institutions play a major role in directing savings to business firms. The savings
of individuals are gathered, pooled, and th
Chapter One: The Financial Environment
The Financial Environment
Define finance and explain why finance should be studied.
Identify and describe the six principles of finance.
Identify characteristics and components of an eff
Chapter Five: Policy Makers and the Money Supply
Policy Makers and the Money Supply
It is important to recognize that the Federal Reserve as administrator of monetary policy does
not operate in isolation but rather in conjunction
Chapter 14, 16 and 17
List the features of preferred stock and compare and contrast with bonds.
Calculate earnings per share, earnings per preferred share, and times-preferred-dividend
Determine the value of a preferred stock