青岛农业大学经济与管理学院财务管理英文课件 chapter5.pptVIP

5. Time Value of Money Valuation contents 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 5.1 Central Concepts 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. 5.2.1 Simple interest Interest that is not added to the p