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Fundamentals of Corporate Finance, Second Edition
book

Fundamentals of Corporate Finance, Second Edition

by Robert Parrino, David S. Kidwell, Thomas W. Bates
October 2011
Beginner
778 pages
36h 16m
English
Wiley
Content preview from Fundamentals of Corporate Finance, Second Edition

6

Discounted Cash Flows and Valuation

image

Leon Neal/AFP/Getty Images/NewsCom

Learning Objectives

image Explain why cash flows occurring at different times must be adjusted to reflect their value as of a common date before they can be compared, and compute the present value and future value for multiple cash flows.

image Describe how to calculate the present value and the future value of an ordinary annuity and how an ordinary annuity differs from an annuity due.

image Explain what a perpetuity is and where we see them in business, and calculate the value of a perpetuity.

image Discuss growing annuities and perpetuities, as well as their application in business, and calculate their values.

image Discuss why the effective annual interest rate (EAR) is the appropriate way to annualize interest rates, and calculate the EAR.

On January 18, 2010, the Board of Directors at Cadbury PLC, the second-largest confectionary company ...

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Publisher Resources

ISBN: 9780470876442Purchase book