Corporate Finance
Lecture 2. Introduction to
Financial Mathematics
Learning Objectives
Calculate future values
Calculate present values
Use the FV and/or PV formulate to know how to solve for
time or interest rate
Know how to compute the PV and FV of
Corporate Finance
Lecture 2. Introduction to
Financial Mathematics
Learning Objectives
Calculate future values
Calculate present values
Use the FV and/or PV formulate to know how to solve for
time or interest rate
Know how to compute the PV and FV of
Corporate Finance
Lecture 2. Introduction to
Financial Mathematics
Learning Objectives
Calculate future values
Calculate present values
Use the FV and/or PV formulate to know how to solve for
time or interest rate
Know how to compute the PV and FV of
Corporate Finance
Lecture 2. Introduction to
Financial Mathematics
Learning Objectives
Calculate future values
Calculate present values
Use the FV and/or PV formulate to know how to solve for
time or interest rate
Know how to compute the PV and FV of
Corporate Finance
Lecture 2. Introduction to
Financial Mathematics
Learning Objectives
Calculate future values
Calculate present values
Use the FV and/or PV formulate to know how to solve for
time or interest rate
Know how to compute the PV and FV of
Corporate Finance
Lecture 3:
Valuation of a Companys Securities
Important things to know
How to value stock (both preferred and
ordinary) inc. getting growth rates
How to value debt inc. different
compounding periods
Relationship between yield-to-matur
Corporate Finance
Lecture 2. Introduction to
Financial Mathematics
Learning Objectives
Calculate future values
Calculate present values
Use the FV and/or PV formulate to know how to solve for
time or interest rate
Know how to compute the PV and FV of