several later chapters, including Chapters 23 and 24. But you have a
sufficient start for now. Bonds are simply long-term loans. If you own a
bond, you are entitled to a regular interest (or coupon) payment and at
maturity you get back the bonds face valu
g) . . . 1 (1 g) t 2 1 (1 g) t 1 1 r 2 g 2 1 r 2 g 11 1 g2 t 111r2 t TABLE
2.2 Some useful shortcut formulas. bre30735_ch02_020-044.indd 35
12/10/09 5:15:09 PM confirming pages 36 Part One Value annual
payment divided by the number of payments in the year
r2 3 1c Fortunately, there is a simple formula for the sum of this
geometric series.8 If we assume that r is greater than g, our clumsylooking calculation simplifies to Present value of growing perpetuity C1
r g Therefore, if you want to provide a perpetu
annually. However, in the United States and Britain government bonds
pay interest semiannually. So if the interest rate on a U.S. government
bond is quoted as 10%, the investor in practice receives interest of 5%
every six months. If the first interest pa
g2 3 11 r2 3 The third row in the figure shows that the difference
between the two sets of cash flows consists of a three-year stream of
cash flows beginning with $1 in year 1 and growing each year at the rate
of g. Its value is equal to the difference be
basic formula, but shortcut formulas can reduce the tedium. We
showed how to value an investment that makes a level stream of cash
flows forever (a perpetuity) and one that produces a level stream for a
limited period (an annuity). We also showed how to v
problems are available in McGraw-Hill Connect. Please see the preface
for more information. BASIC 1. At an interest rate of 12%, the six-year
discount factor is .507. How many dollars is $.507 worth in six years if
invested at 12%? 2. If the PV of $139 is
secondhand shares, but they prefer to describe themselves as
secondary markets, which sounds more important. The two principal
stock exchanges in the United States are the New York Stock Exchange
and Nasdaq. Both compete vigorously for business and just a
interest rate? b. If the expected rate of inflation suddenly rises to 7%,
what does Fishers theory say about how the real interest rate will
change? What about the nominal rate? INTERMEDIATE 15. A 10-year
German government bond (bund) has a face value of
change if their yields to maturity increased by 1 percentage point. Are
long- or short-term bonds most affected by the change in yields? Are
high- or low-coupon bonds most affected? 25. Look again at Table
3.4.Suppose the spot interest rates change to the
The Value of Common Stocks 75 General Electric (GE) has about 10.6
billion shares outstanding and at last count these shares were owned by
about 600,000 shareholders. They included large pension funds and
insurance companies that each own several million
stocks that can be bought or sold in a single trade. These include SPDRs
(Standard & Poors Depository Receipts or spiders), which are
portfolios tracking several Standard & Poors stock market indexes,
including the benchmark S&P 500. You can buy DIAMONDS,
structure only when future short-term interest rates are expected to
rise. The expectations theory cannot be a complete explanation of term
structure if investors are worried about risk. Long bonds may be a safe
haven for investors with long-term fixed li
re30735_ch04_074-100.indd 84 12/1/09 3:38:31 PM 2/1/09 3:38:31
PM confirming pages Chapter 4 The Value of Common Stocks 85 r .50
50.00 .20 .21 But this is silly. No firm can continue growing at 20% per
year forever, except possibly under extreme inflation
Corp 4.7 6.6 11.3 10.1 WGL Holdings Inc 4.6 3.5 8.0 9.2 Average: 10.2%
9.9% TABLE 4.3 Cost-of-equity estimates for local gas distribution
companies at the start of 2009. The long-term growth rate is based on
security analysts forecasts. In the multistage
us at www.mhhe.com/bma bre30735_ch02_020-044.indd 41
re30735_ch02_020-044.indd 41 12/1/09 3:30:20 PM 2/1/09 3:30:20
PM Visit us at www.mhhe.com/bma confirming pages 42 Part One
Value 26. How much will you have at the end of 20 years if you invest
$100 tod
flows. PMT: Amount of annuity payment with a given present or
future value. NPV: Calculates the value of a stream of negative and
positive cash flows. (When using this function, note the warning below.)
XNPV: Calculates the net present value of a series
cash flows. The discounted- cash-flow (DCF) formula for the present
value of a stock is just the same as it is for the present value of any
other asset. We just discount the cash flows by the return that can be
earned in the capital market on securities o
(S&P), and Fitch. Table 3.5lists the possible bond ratings in declining
order of quality. For example, the bonds that receive the highest
Moodys rating are known as Aaa (or triple A) bonds. Then come Aa
(double A), A, Baa bonds, and so on. Bonds rated Baa
the NYSE trades shares in Toyota, Royal Dutch Shell, Canadian Pacific,
Tata Motors, Nokia, Brasil Telecom, China Eastern Airlines, and more
than 400 other companies. Suppose that Ms. Jones, a longtime GE
shareholder, no longer wishes to hold her shares in
look at what determines a stocks market value. Market-to-Book-Value
Ratio PriceEarnings Ratio Company Competitors* Company
Competitors* Johnson & Johnson 3.4 3.0 11.3 10.9 PepsiCo 6.4 3.0 15.6
12.9 Campbell Soup 9.0 4.6 8.8 11.3 Wal-Mart 3.0 2.1 14.6 13.4
it costs. NPV is negative: NPV $352,700 $370,000 2$17,300 Perhaps
you should revert to the original plan of selling in year 1. Your twoperiod calculations in Example 2.1 required just a few keystrokes on a
calculator. Real problems can be much more compli
Cash flow ($000s) 50 57 75 80 85 92 92 80 68 50 If the cost of capital is
12%, what is the machines NPV? Visit us at www.mhhe.com/bma
bre30735_ch02_020-044.indd 40 re30735_ch02_020-044.indd 40
12/1/09 3:30:19 PM 2/1/09 3:30:19 PM Visit us at
www.mhhe.com/
other words, investing at 11% a year continuously compounded is
exactly the same as investing at 11.6% a year annually compounded.
Example 2 Suppose you invest $1 at a continuously compounded rate of
11% ( r .11) for two years ( t 2). The final value of t
provides a perpetual stream of $1 starting at the end of the first year.
We have already seen that this perpetuity has a present value of 1/ r.
Row 2 Now look at the investment shown in the second row. It also
provides a perpetual stream of $1 payments, b
( r/ m)] m 1. In our automobile loan example r .12 and m 12. So the
effective annual interest rate was [1 .12/12] 12 1 .1268, or 12.68%.
Continuous Compounding Instead of compounding interest monthly or
semiannually, the rate could be compounded weekly (
$17,300 + $20,000 + $420,000 2 Year FIGURE 2.4 Calculation showing
the NPV of the revised office project. EXAMPLE 2.1 Present Values
with Multiple Cash Flows Your real estate adviser has come back with
some revised forecasts. He suggests that you rent out
enough to reduce the balance of the loan to zero. Year Beginningof-Year
Balance Year-end Interest on Balance Total Year-end Payment
Amortization of Loan End-of-Year Balance 1 $1,000.00 $100.00 $315.47
$215.47 $784.53 2 784.53 78.45 315.47 237.02 547.51 3
a. If the annually compounded interest rate is 12%, use the Rule of 72
to calculate roughly how long it takes before your money doubles. Now
work it out exactly. b. Can you prove the Rule of 69? 37. Use Excel to
construct your own set of annuity tables sh
SEKOLAH MENENGAH KEBANGSAAN TINGGI MELAKA
61 Jalan Chan Koon Cheng, Bandar Hilir,Melaka
BORANG SOAL SELIDIK
KERJA KURSUS PENGAJIAN AM
KOD MATA PELAJARAN 900/4
Soal selidik ini adalah bagi memenuhi keperluan Penilaian Berasaskan Sekolah (PBS)
untuk mata pe
+
Jugando entre pirmides y
arquitectura hasta equidad de marca
Paola Matos 15-0317
Miguel Soto 15-0430
Brian Rodriguez 15- 0370
Martin Almonte 15-0464
Yolissa Chaljub 15-0583
+
+
Posicionamiento
Con relacin a su posicionamiento
El plan de Unilever para la
PRINCIPIOS DE ADMINISTRACIN
FINANCIERA
Miguel Soto. Marchely Vargas. Priscilla Pimentel
Capitulo 3
ESTADOS FINANCIEROS Y
ANLISIS DE RAZONES
FINANCIERAS
INFORME PARA LOS
ACCIONISTAS
Se deben elaborar periodicamente informes para
los organismos reguladores
PRINCIPIOS DE ADMINISTRACIN
FINANCIERA
Miguel Soto. Marchely Vargas. Priscilla Pimentel
Capitulo 5
VALOR DEL DINERO EN EL TIEMPO
QU ES?
El valor del dinero en el tiempo se refiere al hecho de que
es mejor recibir dinero ahora que despus. El dinero que
ust
Comportamiento del Consumidor y el Comprador Organizacional:
Diferencia entre Consumidor y Comprador Organizacional:
Menos Compradores Organizaciones: Una compaa comercializadora de productos
industriales tendr menos compradores potenciales que una dedic