Reference no: EM13929856
Question:
Within the Discussion Board area, write 400-600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
The time value of money concept is one of the 3 major principles of the study and practice of financial management. It is used to evaluate potential investments, determine a rate of return on a project, calculate the required payments on a loan or annuity, and estimate a future value of funds currently invested and the present value of funds to be received at some future date. It is imperative that managers at all levels of business have a working knowledge of this topic. In your first task, you have been asked to engage your colleagues in a detailed and documented discussion about the time value of money concept: what it is, why it is important, how it is used, and generally, how the applications to single and periodic payments are computed using various calculation methods and formulas.
In your initial post, identify and recommend at least 1 credible Web site that an investor can visit to find the current market value of market indexes such as the Dow Industrial Averages, and address at least 3 of the following:
- What is the discounted cash flow concept, and why is it essential for financial managers to understand and employ this important concept?
- What are the methods associated with evaluating single or periodic payments, and what is at least 1 application of each?
- Discuss the different methods that can be used to calculate these amounts, and explain how at least 1 of these models can be used.
- How can the time value of money models or formulas be used to determine the rate of return for an investment or the time it will take for a current sum to grow to a desired future amount?
- Discuss the "Rule of 72" and how it can be used to estimate how long it takes for money to double at various rates of return.
- Identify and recommend at least 1 credible Web site that an investor can visit to find the current market value of market indexes such as the Dow Industrial Averages.
Be sure to document your posts with in-text citations, credible sources, and properly listed references
|
What types of social responsibilities that business have
: What are the four types of social responsibilities that businesses have? Discuss the ethical pros and cons of doing business with a sweatshop in a developing nation.
|
|
Terms of estimating the fair value of their existing shares
: Minisoft Corporation and Pear, Inc. are the two largest computer companies in the United States. Pending Department of Justice antitrust review, the two corporations plan to merge, renaming their company “Mini-Pear, Inc.”. What rights do the minority..
|
|
Create a more competitive corporate tax system
: Please view the video and identify at least two legislative recommendations you would make to create a more competitive corporate tax system in the United States. Discuss one proposal you would suggest to tax the profits (cash) located in other co..
|
|
Strict residual dividend policy-maintains capital structure
: Company XYZ practices a strict residual dividend policy and maintains a capital structure with a debt-equity ratio of 1.5. Earnings after taxes this year were NOK 8 million. XYZ plans to make capital investments next year of NOK 12 million. How much ..
|
|
What is the discounted cash flow concept
: What is the discounted cash flow concept, and why is it essential for financial managers to understand and employ this important concept?
|
|
What is the fee charged by the bank for issuing new equity
: In order to raise new equity Grimm Inc. employs Speed Bank. Grimm wants to raise $28 million in equity for a new project (not including the fee paid to the investment bank). Grimm keeps a constant debt-to-value ratio equal to 40%. What is the fee cha..
|
|
Write a memorandum to the partners of tucker & connley
: Write a memorandum to the partners of Tucker & Connley, explaining whether each of these events is material.
|
|
Explain the purpose of each of the sec forms
: The EDGAR website describes many SEC-required forms. Explain the purpose of each of the following SEC forms: Form 8-K, Form 10-K and Form 10-KSB
|
|
What is the beta of debt
: El Paso Inc. has an unlevered beta equal to 0.7 and an equity beta equal to 1.4. The Debt-to-Value ratio is 70% and the corporate tax rate is 15%. What is the beta of debt? Show your working
|