Financial Decisions

1. price with diferent dividends

2. security price

3. Valuing bonds and shares

3.1. coupon payment

3.2. security price zero

3.3. total return

3.4. constant dividend growth model

3.5. coupon bond formula

3.6. bond price formula

4. Capital markets & CAPM

4.1. expected return formula

4.2. variance & standar deviation formula

4.3. market risk premium

4.4. market risk premium formula

4.5. zero coupon bond

5. The time value of money

5.1. Three rules of time travel

5.1.1. only values at the same point of timecan be comared or combined

5.1.2. to move a cash flow forward in time, you must compound it

5.1.3. to move a cash flow backward in time, you must discount it

6. Arbitrage and Financial decision making

6.1. Rate of return formula

6.2. return=

7. Investment decision rules

7.1. eva (when capitals lasts forever) used to measure the value a company generates from funds invested into it

7.2. Internalrate of return