Unit 1 Discussion Board 2
Advertising and Public Relations
(MKTG320-1602A-01)
Professor Jodee Phillips
Colorado Technical University Online
Advertising is something that brings awareness in the publics eye to your business. This
is done to show what you h
Do not type in RED CELL
Calculate Present Value / Bond Price (PV = FV x 1 / (1 + r)n)
PV
Nper (Time)
-$0.86
Rate (Interest YTM)
PMT (Payment)
1
16.00%
0.000
Calculate Future Value of Cash Flows (FV = PV x (1 + r)n)
PV
Nper (Time)
0
Rate (Interest)
10
PMT
Do not type in red cells.
Calculate Present Value / Bond Price (PV = FV x 1 / (1 + r)n)
PV
Nper (Time) Rate (Interest YTM) PMT (Payment) FV (Future Value) Type
-$2,229.65
20
10.00%
0.000
15,000
0
Calculate Future Value of Cash Flows (FV = PV x (1 + r)n)
P
IRR and the DCF Model Video links
Click here to watch a video on the basics of internal rate of return (IRR).
Click here to watch a video on the basic valuation principles that apply to any asset.
References
wstss. (2008, July 7). WST: 7.2 basic financial
IRR: Advantages and Disadvantages
Advantages of
IRR
Disadvantages
of IRR
IRR shows the return on the original
money invested.
IRR should not be used exclusively
for ranking projects.
IRR is related to NPV results.
Meaning if NPV is positive, IRR
would
Overview of Capital Budgeting Techniques
Techniques used in capital budgeting include the following:
ARR
Accounting Rate of Return
NPV
Net Present Value
PI
Profitability Index
IRR
MIRR
EAC
Internal Rate of Return
Modified Internal Rate of
Return
Equ
CF0 -160,000.00
CF1
60,000.00 Net Income 1
CF2
70,000.00 Net Income 2
CF3
90,000.00 Net Income 3
Your required return for
assets of this risk
Average Book Value
15%
0.00
Capital Budgeting:
Acquire long-term assets
Because long-term assets:
Determine the n
Capital Structure
Introduction
This node introduces capital structure. That is, how the business is financed. The usual ways to
finance a business are through debt and equity. The cost of debt tends to be lower than the cost of
equity. This node will go o
The Capital Asset Pricing Model and Sensitivity Analysis and
Scenario Analysis
Introduction
This node will discuss the capital asset pricing model (CAPM), sensitivity analysis, and scenario
analysis. CAPM is a linear model that can be used to determine a
Advantages and Disadvantages with Debt
Introduction
This node will explore the advantages and disadvantages of debt. Corporations get a tax shield
from having debt in their capital structure. There are no ownership rights with debt; as a result, if
a corp
Advantages and Disadvantages with Equity
Introduction
This node will explore the advantages and disadvantages of equity. Corporations dont get a tax
shield from having equity in their capital structure. Corporations dont have to pay a dividend to
equity h
Episode 123: Introduction to debt and equity financing
Welcome to Alanis Business Academy. I'm Matt Alanis and this is An Introduction to Debt
and Equity Financing.
Finance is the function responsible for identifying the firm's best sources of funding as
Retained Earnings the Cost of Preferred Stock and Capital
Structure Theories
Introduction
This node will discuss retained earnings, the cost of preferred stock, and some capital structure
theories. An organizations retained earnings will grow over time, a
After-Tax Cost of Debt
WACC
Unweighted Cost
Weight of Component
Weighted Cost of Component
Unweighted Cost
Weight of Component
Weighted Cost of Component
Unweighted Cost
Weight of Component
Weighted Cost of Component
Unweighted Cost
Weight of Component
We
Cost of Debt
Introduction
This node will explore the cost of debt. An organizations cost of debt tends to be lower than the
cost of equity. The organizations pretax cost of debt is the yield to maturity on the organizations
bonds. The after-tax cost of de
Weighted Average Cost of Capital
Introduction
This node will discuss the weighted average cost of capital (WACC). Its a weighted average of
the various financing costs and weights. An organization should strive to reduce its WACC. The
cost of common equit
Cost of Equity
Introduction
This node will look at the cost of equity. The cost of equity tends to be greater than the cost of
debt. Unlike debt, organizations dont get a tax deduction from using equity in their capital
structure. An organizations cost of
Bond Characteristics
Introduction
This node introduces you to various bond characteristics, such as par value, coupon interest rate,
maturity date, and call provisions. Unlike a coupon rate, a bonds yield to call varies over time.
Learning Materials
Par V
Stock Valuation Part 2 Dividend Discount Model
Introduction
This node will look at another common stock valuation approachthe Dividend Discount
Model. Additionally, you will learn about preferred stock valuation. To apply the Dividend
Discount Model, the
Risk Standard Deviation and Variance
Introduction
In this node, you will learn in this node about risk and, in particular, standard deviation and
variance. Standard deviation is the square root of the variance.
Learning Materials
Risk
Risk is the differen
Risk CAPM and Beta
Introduction
This node focuses on beta and the Capital Asset Pricing Model (CAPM). The beta of the overall
stock market is one.
Learning Materials
Beta
The greater the standard deviation of the stock, the greater the beta. The greater t
Rates of Return
Introduction
In this node, you will learn about the various rates of return. The total return for a common stock
equals the dividend yield plus the capital gains yield.
Learning Materials
Return on Investment
Return on investment simply me
Stock Valuation Part 1 Free Cash Flows and Ratios
Introduction
In this node, you will learn about two stock valuation approachesthe free cash flow approach
and the financial ratio approach. If a stocks P/E ratio is greater than the overall stock markets
P