马 致用·专业达语系列孝改可 财务管理 Professional 专业英语 English for 第3版 Professiondl English for Financial Financial Manggemene 东北财经大学刘媛媛 Management 3/e ⊙怒感五当出御热 刘媛媛编 机械工业出版社 Topic 5:Time Value of Money (TVM)and valuation
Professional English for Financial Management 3/e 刘媛媛 编 机械工业出版社 Topic 5: Time Value of Money (TVM) and valuation
Outline Learning Objectives:Topic 5 5.I Central Concepts in Financial Management 5.2 Simple vs.Compound Interest Rates and Future vs.Present Value 5.3 Annuity 5.4 Valuation Fundamentals 5.5 Bond Valuation 5.6 Common Stock Valuation >5-2 SDUT Chen Gang Spring 2018
Outline & Learning Objectives: Topic 5 5.1 Central Concepts in Financial Management 5.2 Simple vs. Compound Interest Rates and Future vs. Present Value 5.3 Annuity 5.4 Valuation Fundamentals 5.5 Bond Valuation 5.6 Common Stock Valuation 5-2 SDUT Chen Gang Spring 2018
Core words expressions:Topic 5 Ref.pp.83~84 >5-3 SDUT Chen Gang Spring 2018
Core words & expressions: Topic 5 Ref. pp.83~84 5-3 SDUT Chen Gang Spring 2018
Central Concepts in Financial Management Risk-return tradeoff Investors will take on additional risk only if they anticipate high return. Time value of money A dollar available today is worth more than a dollar available at a future date. This is because a dollar today can be invested to earn a return. Investors require compensation for both risk bearing and the time value of money. These 2 principles lie at the heart of the financial decision- making concepts. >5-4 SDUT Chen Gang Spring 2018
Central Concepts in Financial Management Risk-return tradeoff Investors will take on additional risk only if they anticipate high return. Time value of money A dollar available today is worth more than a dollar available at a future date. This is because a dollar today can be invested to earn a return. Investors require compensation for both risk bearing and the time value of money. These 2 principles lie at the heart of the financial decisionmaking concepts. 5-4 SDUT Chen Gang Spring 2018
Simple vs.Compound Interest Rates and Future vs.Present Value(1/3) Simple interest Interest that is not added to the principal or capital in calculating subsequent interest payments is referred to as ~ FV=PV.(1+ni) FV PV= Sentence: 1+n.i If simple interest is paid on a debt instrument(such as bonds),it is generally referred to as an annuity. The present value of the annuity is the price at which the debt instrument trades in an efficient market. >5-5 SDUT Chen Gang Spring 2018
Simple vs. Compound Interest Rates and Future vs. Present Value (1/3) Simple interest Interest that is not added to the principal or capital in calculating subsequent interest payments is referred to as ~. Sentence: If simple interest is paid on a debt instrument (such as bonds), it is generally referred to as an annuity. The present value of the annuity is the price at which the debt instrument trades in an efficient market. FV PV (1 ) = + n i FV PV 1 n i = + 5-5 SDUT Chen Gang Spring 2018