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TIME VALUE OF MONEY 1 TIME VALUE OF MONEY THE CONCEPT OF TIME VALUE OF MONEY EFFECTIVE vs. NOMINAL RATE OF INTEREST METHOD OF COMPOUNDING FUTURE VALUE OF A SINGLE FLOW FUTURE…

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1. FINANCIAL MATHEMATICS Simple and Compound interest 2. SPECIFIC AIMS Vukile XhegoBy the end of the lesson, learners should be able to: Define compounded and…

Documents McGraw-Hill/Irwin Corporate Finance, 7/e © 2005 The McGraw-Hill Companies, Inc. All Rights...

Slide 1McGraw-Hill/Irwin Corporate Finance, 7/e © 2005 The McGraw-Hill Companies, Inc. All Rights Reserved. 9-0 CHAPTER 9 Capital Market Theory: An Overview Slide 2 McGraw-Hill/Irwin…

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* Introduction Corporate Finance – how decision making affects “value”. Corporate finance is not a number “game”. Focus: (a) practical issues that arise in valuation,…

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Slide 1 12-0 Week 6 Lecture 6 Ross, Westerfield and Jordan 7e Chapter 12 Some Lessons from Capital Market History Slide 2 12-1 Last Week.. Capital Budgeting Techniques NPV,…

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Return, Risk, and the SML. RWJ-Chapter 13. Dividends. Ending market value. Time. 0. 1. Initial investment. Returns. Dollar Returns the sum of the cash received and the change…