公司财务与金融.pptxVIP

;Why is corporate finance important to all managers?;;;;;;;;;;;;What are some financial instruments?;Financial Instruments (Continued);;;;;;;;;;;;;;;;;;How can you construct a hypothetical Treasury yield curve?;;;;;;;;;;;;0;0;Some argue that the PEH isn’t correct, because securities of different maturities have different risk. General view (supported by most evidence) is that lenders prefer S-T securities, and view L-T securities as riskier. Thus, investors demand a MRP to get them to hold L-T securities (i.e., MRP 0).;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;FV of $100 at a 12% nominal rate for 5 years with different compounding;;;;Finding EFF with HP17BII;;;;;;;;;;;;;On January 1 you deposit $100 in an account that pays a nominal interest rate of 11.33463%, with daily compounding (365 days). How much will you have on October 1, or after 9 months (273 days)? (Days given.);iPer = 11.33463%/365 = 0.031054% per day.;;;;;;;;You are offered a note which pays $1,000 in 15 months (or 456 days) for $850. You have $850 in a bank which pays a 6.76649% nominal rate, with 365 daily compounding, which is a daily rate of 0.018538% and an EAR of 7.0%. You plan to leave the money in the bank if you don’t buy the note. The note is riskless. Should you buy it?;3 Ways to Solve: 1. Greatest future wealth: FV 2. Greatest wealth today: PV 3. Highest rate of return: Highest EFF%;;;;;Find the EFF% on note and compare with 7.0% bank pays, which is your opportunity cost of capital:;;Using interest conversion: P/YR = 365 NOM% = 0.035646(365) = 13.01 EFF% = 13.89 Since 13.89% 7.0% opportunity cost, buy the note.;;;;;;;;;;;;;;;;Coefficient of Variation:CV = standard deviation/Expected return.;Expected Return versus Coefficient of Variation;Return vs. Risk (Std. Dev.): Which investment is best?;;;;;;;;;;;;;How are betas calculated? ;;;Calculating Beta for KWE;;;;Finding Beta Estimates on the Web;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;If company can’