Presentation is loading. Please wait.

Presentation is loading. Please wait.

Plan for today (13 July) Introduce time value of money (TVM) by illustrating how TVM can help us understand why maximizing shareholder wealth is an appropriate.

Published byPenelope Parsons Modified over 9 years ago

Similar presentations

Presentation on theme: "Plan for today (13 July) Introduce time value of money (TVM) by illustrating how TVM can help us understand why maximizing shareholder wealth is an appropriate."— Presentation transcript:

1 Plan for today (13 July) Introduce time value of money (TVM) by illustrating how TVM can help us understand why maximizing shareholder wealth is an appropriate corporate objective. Various examples of the 4 learning objectives for chapter 5 (see next page):

2 Chapter 5 Learning Objectives

3 How Financial Markets Reconcile Preferences for Current vs. Future Consumption

4

5 Simple TMV problems using Financial Calculator

6 Time value of Money in Excel

7 Rule of 72 from Khan Academy 7

8 Rule of 72 and its generalization See Rule of 72 Worksheet.Rule of 72 Worksheet

9 Future Value and Present Value Tables See http://bit.ly/tvmtables (password is “baylorbears”)http://bit.ly/tvmtables Next, go to http://bit.ly/tvmspreadsheet and replicate the information contained in http://bit.ly/tvmtables.http://bit.ly/tvmspreadsheet http://bit.ly/tvmtables

10 Summary of Time Value Calculations

11

Download ppt "Plan for today (13 July) Introduce time value of money (TVM) by illustrating how TVM can help us understand why maximizing shareholder wealth is an appropriate."

Similar presentations

Capital Budgeting Capital Budgeting: How managers plan significant outlays on projects that have long-term implications (such as the purchase of new equipment.

Capital Budgeting Capital Budgeting: How managers plan significant outlays on projects that have long-term implications (such as the purchase of new equipment.
Personal Finance Chapter 1: Personal Financial Planning

Personal Finance Chapter 1: Personal Financial Planning
CS 221 Chapter 2 Excel. In Excel: A1 = 95 A2 = 95 A3 = 80 A4 = 0 =IF(A1

CS 221 Chapter 2 Excel. In Excel: A1 = 95 A2 = 95 A3 = 80 A4 = 0 =IF(A1
Chap 3 Net Present Value.  Net present value is the single most widely used tool for large investments made by corporations.  Klammer reported a survey.

Chap 3 Net Present Value.  Net present value is the single most widely used tool for large investments made by corporations.  Klammer reported a survey.
Copyright © 2009 Pearson Prentice Hall. All rights reserved. Chapter 9 Capital Budgeting Techniques.

Copyright © 2009 Pearson Prentice Hall. All rights reserved. Chapter 9 Capital Budgeting Techniques.
Copyright © 2003 Pearson Education, Inc. Slide 9-0 Chapter 9 Capital Budgeting Techniques.

Copyright © 2003 Pearson Education, Inc. Slide 9-0 Chapter 9 Capital Budgeting Techniques.
Capital Budgeting Techniques

Capital Budgeting Techniques
© Mcgraw-Hill Companies, 2008 Farm Management Chapter 17 Investment Analysis.

© Mcgraw-Hill Companies, 2008 Farm Management Chapter 17 Investment Analysis.
Chapter 9 Capital Budgeting Techniques. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-2 Learning Goals 1.Understand the role of capital.

Chapter 9 Capital Budgeting Techniques. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-2 Learning Goals 1.Understand the role of capital.
Compound Interest. Does anyone have any interest in interest? Very few banks today pay interest based on the simple interest formula. Instead, they pay.

Compound Interest. Does anyone have any interest in interest? Very few banks today pay interest based on the simple interest formula. Instead, they pay.
Saving and Interest February 2014. Saving and Interest An Equation to define Savings: – SAVING = Disposable Income – Consumption. Interest: – Simple Interest.

Saving and Interest February Saving and Interest An Equation to define Savings: – SAVING = Disposable Income – Consumption. Interest: – Simple Interest.
1 Time Value Analysis Corporate Finance Dr. A. DeMaskey.

1 Time Value Analysis Corporate Finance Dr. A. DeMaskey.
Chapter 17 Investment Analysis

Chapter 17 Investment Analysis
1 Chapter 11 Time Value of Money Adapted from Financial Accounting 4e by Porter and Norton.

1 Chapter 11 Time Value of Money Adapted from Financial Accounting 4e by Porter and Norton.
Click your mouse to continue. What Is Excel? You’ve probably seen news programs and other organizations use charts and tables of numbers to analyze and.

Click your mouse to continue. What Is Excel? You’ve probably seen news programs and other organizations use charts and tables of numbers to analyze and.
4b.1 Van Horne and Wachowicz, Fundamentals of Financial Management, 13th edition. © Pearson Education Limited 2009. Created by Gregory Kuhlemeyer. Chapter.

4b.1 Van Horne and Wachowicz, Fundamentals of Financial Management, 13th edition. © Pearson Education Limited Created by Gregory Kuhlemeyer. Chapter.
0 Financial Markets and Net Present Value Lecture Outline I.Introduction II.Perfect markets and arbitrage III.Two-period model IV.Real investment opportunities.

0 Financial Markets and Net Present Value Lecture Outline I.Introduction II.Perfect markets and arbitrage III.Two-period model IV.Real investment opportunities.
1 Chapter 1: Goal and Functions of Finance Objective of the Firm – the primary goal of the firm is to maximize stockholder wealth Wealth Maximization versus.

1 Chapter 1: Goal and Functions of Finance Objective of the Firm – the primary goal of the firm is to maximize stockholder wealth Wealth Maximization versus.
Chapter 1 - Financial Management  Learning Objectives  Describe the “Cycle of Money”  Distinguish the four main areas of finance  Discuss financial.

Chapter 1 - Financial Management  Learning Objectives  Describe the “Cycle of Money”  Distinguish the four main areas of finance  Discuss financial.
MP I: Financial Management Segment. Financial Mgt. Segment of MP I: Two Topics 1.Financial planning and financial statement analysis 2.Introduction to.

MP I: Financial Management Segment. Financial Mgt. Segment of MP I: Two Topics 1.Financial planning and financial statement analysis 2.Introduction to.

Similar presentations

Ads by Google