PettyCh105e课程.pptVIP

Petty, Keown, Scott, Martin, Martin, Burrow, Nguyen: Financial Management 5e ? 2009 Pearson Education Australia PowerPoint to accompany Chapter 10 Valuation of bonds and shares Objectives Explain why we need to understand valuation Define the term ‘value’ Explain the basic concept of valuing an asset Understand how to value bonds, preference shares and ordinary shares Understand and be able to calculate an investor’s expected rate of return on bonds and shares Objectives cont’d Explain the relationship between the expected rate of return, the required rate of return and the cost of funds to a