COMMERCE 4FP3 Study Guide - Final Guide: Corporate Finance, Valuation Of Options, Net Present Value

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 4FP3
• Professor: Jordan Fortino

Document Summary

These class notes review this material and also provide some help for a financial calculator. It also has some self-test questions and problems. See any principles of finance book for a more extensive explanation. Eugene f. brigham, joel f. houston fundamentals of financial management hg 4026 b6693 1998. Ross, stephen a, westerfield, and jordan fundamentals of corporate finance hg 4026 . r677 1995. Time value of money: know this terminology and notation. Pv present value i rate per period t # of time periods (1+i)t future value interest factor [fvif] 10,000 x (1. 05) = ,500: factor out the ,000, this leaves (1. 05) as the factor, find the value of ,000 earning 5% interest per year after two years. Start with the amount after one year and multiply by the factor for each year. So (1+i)t = (1+i) (1+i) (1+i) (1+i) (1+i) (1+i) (1+i) (1+i) for t times. Find the value of ,000 in 10 years.