The document discusses the concept of time value of money. It explains that money has value over time due to inflation, delayed consumption, and opportunity cost. There are four scenarios for time value of money: future value of a single sum, present value of a single sum, future value of an annuity, and present value of an annuity. Formulas are provided for calculating future and present values of single sums and annuities, including growing annuities, annuities due, and perpetuities. The concepts of effective annual rate, real rate of return, and inflation-adjusted returns are also introduced.
time value of money
,
concept of time value of money
,
significance of time value of money
,
present value vs future value
,
solve for the present value
,
simple vs compound interest rate
,
nominal vs effective annual interest rates
,
future value of a lump sum
,
solve for the future value
,
present value of a lump sum
,
types of annuity
,
future value of an annuity
time value of money
,
concept of time value of money
,
significance of time value of money
,
present value vs future value
,
solve for the present value
,
simple vs compound interest rate
,
nominal vs effective annual interest rates
,
future value of a lump sum
,
solve for the future value
,
present value of a lump sum
,
types of annuity
,
future value of an annuity
The presentation slide is on stock valuation. We have tried to present the various techniques to stock valuation under which different methods are discussed with illustrations. Key concepts:
Zero Growth Model
Balance sheet Technique
Constant Growth Model
Two-stage growth Model
Feel Free to comment.
Chapter 1 Introduction to Financial ManagementSafeer Raza
Chapter 1 of Financial Management by Van horn
Introduction to Financial management
Topics
Introduction
What is Financial Management
Investment Decision
Financing decision
Asset management Decision
Goal of the firm
Value creation or profit maximization
wealth maximization
Agency problems
Corporate Social Responsibility
Corporate governance
Organization of the financial management function
Government bonds are fixed interest securities
This means that a bond pays a fixed annual interest – this is known as the coupon
The coupon (paid in £s, $s, Euros etc.) is fixed but the yield on a bond will vary
The yield is effectively the interest rate on a bond
The yield will vary inversely with the market price of a bond
When bond prices are rising, the yield will fall
When bond prices are falling, the yield will rise
describing the exchange rate systems, explaining how government uses direct and indirect intervention to influence exchange rates, and how government intervention in the forex markets.
The presentation slide is on stock valuation. We have tried to present the various techniques to stock valuation under which different methods are discussed with illustrations. Key concepts:
Zero Growth Model
Balance sheet Technique
Constant Growth Model
Two-stage growth Model
Feel Free to comment.
Chapter 1 Introduction to Financial ManagementSafeer Raza
Chapter 1 of Financial Management by Van horn
Introduction to Financial management
Topics
Introduction
What is Financial Management
Investment Decision
Financing decision
Asset management Decision
Goal of the firm
Value creation or profit maximization
wealth maximization
Agency problems
Corporate Social Responsibility
Corporate governance
Organization of the financial management function
Government bonds are fixed interest securities
This means that a bond pays a fixed annual interest – this is known as the coupon
The coupon (paid in £s, $s, Euros etc.) is fixed but the yield on a bond will vary
The yield is effectively the interest rate on a bond
The yield will vary inversely with the market price of a bond
When bond prices are rising, the yield will fall
When bond prices are falling, the yield will rise
describing the exchange rate systems, explaining how government uses direct and indirect intervention to influence exchange rates, and how government intervention in the forex markets.
Role of Financial Statements
Auditors Report
Management Discussion and Analysis
Balance Sheet
Statement of Profit and Loss
Cash Flow statement
Accounting Polices
How to define Assets , Liabilities , Investments , Revenues , Expenses , Taxes, Cash Flow statements
International Trade and Inherent Risks
Definition
Need for Trade Finance
Players and stake holders
Elements of Trade Finance
Traditional
Trending
Trade Financing Agencies
Terminology
Inco Terms
Summary
Very Basic of Finance
What is Derivative
Why do we need derivative in the world of finance
Derivative Market at a glance
Types of Derivative
OTC Vs Exchange Traded
Option and Future (F&O)
Derivative Market in India
Regulatory Framework
Present Day
Our accounting professor permitted us to use one 8x11 sheet of paper during our comprehensive final exam. Within a short amount of time I laid out all the major concepts we covered along with my own notes/examples. I also recruited Pac Man to help out with making room for our final chapter topics.
Edit: Full res version here --> http://www.joejan6.com/scratch/GuideSheet13.pdf
Management of funds is a critical aspect of financial management. Management of funds acts as the foremost concern whether it is in a business undertaking or in an educational institution. Financial management, which is simply meant dealing with management of money matters.
Financial Management is efficient use of economic resources namely capital funds. Financial management is concerned with the managerial decisions that result in the acquisition and financing of short term and long term credits for the firm. Here it deals with the situations that require selection of specific assets, or a combination of assets and the selection of specific problem of size and growth of an enterprise. Herein the analysis deals with the expected inflows and outflows of funds and their effect on managerial objectives. In short, Financial Management deals with Procurement of funds and their effective utilization in the business.Management of funds is a critical aspect of financial management. Management of funds acts as the foremost concern whether it is in a business undertaking or in an educational institution. Financial management, which is simply meant dealing with management of money matters.
Financial Management is efficient use of economic resources namely capital funds. Financial management is concerned with the managerial decisions that result in the acquisition and financing of short term and long term credits for the firm. Here it deals with the situations that require selection of specific assets, or a combination of assets and the selection of specific problem of size and growth of an enterprise. Herein the analysis deals with the expected inflows and outflows of funds and their effect on managerial objectives. In short, Financial Management deals with Procurement of funds and their effective utilization in the business.
Management of funds is a critical aspect of financial management. Management of funds acts as the foremost concern whether it is in a business undertaking or in an educational institution. Financial management, which is simply meant dealing with management of money matters.
Financial Management is efficient use of economic resources namely capital funds. Financial management is concerned with the managerial decisions that result in the acquisition and financing of short term and long term credits for the firm. Here it deals with the situations that require selection of specific assets, or a combination of assets and the selection of specific problem of size and growth of an enterprise. Herein the analysis deals with the expected inflows and outflows of funds and their effect on managerial objectives. In short, Financial Management deals with Procurement of funds and their effective utilization in the business.
Management of funds is a critical aspect of financial management. Management of funds acts as the foremost concern whether it is in a business undertaking or in an educational institution. Financial management, Management of fund
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
2. Time Value of Money – Module 1
Time has Value:
• Inflation ( Purchase power of Rs100/- at present day is not
same as Future day )
• Delayed Consumption ( You are opting not to consume now ,
so cost of not using it is attached)
• Opportunity Cost: Money can be employed to get better risk
free return
Value of Money can vary over time keeping points we discussed
3. Time Value of Money – Module 1
Time Value at future point can be calculated by accounting
• Interest or return earned or expected to earn
• Or Inflation Accrued .
Say a person expects 5 % return
For him Rs100/- paid now and Rs105/- paid after one year later
both have same value . So Rs5 /- is Time value of Money he expects.
Y1 Rs100/- --- Y2 Rs105/-
4. Time Value of Money – Module 1
There can be Four Scenarios for Time Value of Money
• Future Value of Single Sum – Compounding
• Present Value of Single Sum – Discounting
• Future value of Annuity Payment
• Present value of Annuity Payment
5. Time Value of Money – Module 1
Future Value of Single Sum .
FV = Future Value
PV= Present Value
r= rate of return
n= time period.
FV= PV(1+r)n
6. Time Value of Money – Module 1
Future Value of Single Sum .
FV= PV(1+r)n
You have invested Rs 1000/- for 5 year at 10% compounded yearly .
What is FV .
PV=1000
N=5
r=10% = 10/100=.10
FV = 1000(1+.10)5
= 1610.51 /-
7. Time Value of Money – Module 1
Future Value of Single Sum . When we are compounding
other than year
FV= PV(1+r)n --- Compounding yearly
Banker agrees to pay interest rate on a five year certificate of deposit at
a rate of 6% on a quarterly compounding ( Four times a year ) .
What is the future value of a Rs 1000/- CD in five years .
PV= 1000/- , r= 6% , n= 5 years .
We have extra factor called compounding factor m=4
Return is paid 4 times= r/4 (r/m)
It will be paid 4 times a year so time period =n*4(r*m)
9. Time Value of Money – Module 1
Future Value of Money – Problems– more examples ….
Company A is assuring Rs 5000/- for Rs 1000/- invested for 10 years
Company B is assuring Rs 7000/- for Rs 1000/- invested for 10 years .
Keeping other parameters same which is a better investment .
Company A :
FV=5000 , PV=1000/- , n=10 , r=?
5000=1000(1+r)10 > (1+r)=51/10 = .1746 = .1746*100= 17.46 %
Company B :
FV=7000 , PV=1000/- , n=12 ,r=?
7000=1000(1+r)12 > ??????
10. Time Value of Money – Module 1
Future Value of Money – Problems– more examples ….
Mr Ashwin Wants to go to World Trip , which is costing 5L as of today.
He would be going on the trip 5 years once he retires . He wants to
know what amount he needs to invest in an instrument which gives
12% return , so as to fund his world trip after 5 years. Assume
inflation = 6%.
Mr A , is planning to fund his child education after 10 years , he
expects the cost after 10 years is going to be 10L . He is planning to
invest in FD which is going to give a interest of 10% compounded
half yearly . He wants to understand what amount he need to invest
now for next 10 years in this FD to fund his kids education.
11. Time Value of Money – Module 1
Discounting :
It is reverse of compounding
FV=PV(1+r)n
PV=FV/(1+r)n
12. Time Value of Money – Module 1
What Are Annuities?
Annuities are essentially a series of fixed payments required from
you or paid to you at a specified frequency over the course of a fixed
time period.
• There are two basic types of annuities: ordinary annuities and
annuities due.
Ordinary Annuity: Payments are required at the end of each period.
For example, Interest on FD are paid at end of the Month .
• Annuity Due: Payments are required at the beginning of each
period. EMI is example where u pay starting of the month for that
month . Or even SIP.
13. Time Value of Money – Module 1
Future Value of a Annuity :
Lets look at future value of a Ordinary Annuity:
If some one deposits rs1000 at end if every month for 5 years and
you are paid a interest of 5% per annually . What is the corpus you
will have at end of the 5 years.
You are doing a series of payments for next 5 years . This a ordinary
annuity . ( explain it in normal FV calculation )
14. Time Value of Money – Module 1
Future Value of a Ordinary Annuity :
The future value of an annuity formula is used to calculate what the value at a
future date would be for a series of periodic payments.
The future value of an annuity formula assumes that
1. The rate does not change
2. The first payment is one period away
3. The periodic payment does not change
If the rate or periodic payment does change, then the sum of the future value
of each individual cash flow would need to be calculated to determine the
future value of the annuity. If the first cash flow, or payment, is made
immediately, the future value of annuity due formula would be used.
15. Time Value of Money – Module 1
Future Value of a Annuity :
If some one deposits rs1000 at end if every month for 5 years and you
are paid a interest of 5% per annually . What is the corpus you will
have at end of the 5 years.
You are doing a series of payments for next 5 years . This a ordinary
annuity . ( explain it in normal FV calculation –scan copy)
16. Time Value of Money – Module 1
Future Value of a Annuity due :
The future value of annuity due formula is used to calculate the ending value of a
series of payments or cash flows where the first payment is received immediately. The
first cash flow received immediately is what distinguishes an annuity due from an
ordinary annuity. An annuity due is sometimes referred to as an immediate annuity.
The future value of annuity due formula calculates the value at a future date. The use
of the future value of annuity due formula in real situations is different than that of the
present value for an annuity due. For example, suppose that an individual or company
wants to buy an annuity from someone and the first payment is received today. To
calculate the price to pay for this particular situation would require use of the present
value of annuity due formula. However, if an individual is wanting to calculate what
their balance would be after saving for 5 years in an interest bearing account and they
choose to put the first cash flow into the account today, the future value of annuity due
would be used.
17. Time Value of Money – Module 1
Future Value of a Annuity :
Lets look at future value of a Ordinary Annuity:
If some one deposits rs1000 at starting of every month for 5 years
and you are paid a interest of 5% per annually . What is the corpus
you will have at end of the 5 years.
You are doing a series of payments for next 5 years . This a ordinary
annuity . ( explain it in normal FV calculation and also formula)
18. Time Value of Money – Module 1
Future Value of a growing Annuity :
The formula for the future value of a growing annuity is used to calculate the future
amount of a series of cash flows, or payments, that grow at a proportionate rate. A
growing annuity may sometimes be referred to as an increasing annuity.
Ex: A is getting a salary of 5Lac per year and he expects his yearly salary to grow at 10% .
He deposits 50% of his salary in FD which gives a return of 8%. What is the corpus at end
of 5 years . He is gets salary end of every year.
19. Time Value of Money – Module 1
Present Value of a Annuity :
Ordinary Annuity:
The present value of annuity formula determines the value of a series of future
periodic payments at a given time.
The formula shown has assumptions, in that it must be an ordinary annuity. These
assumptions are that
1) The periodic payment does not change
2) The rate does not change
3) The first payment is one period away
20. Time Value of Money – Module 1
Present Value of a Annuity :
Annuity due:
The formula for the present value of an annuity due, sometimes referred to as an
immediate annuity, is used to calculate a series of periodic payments, or cash flows, that
start immediately.
21. Time Value of Money – Module 1
Perpetuity:
Infinite series of equal cash flows occurring at regular intervals. It
has indefinitely long life.
PVp = Cash flow/r
Find out the present value of an investment which is expected to give a
return of rs 2500 p.a indefinitely and the rate of interest is 12 % pa.
= 2500/.12
= 2083.33
22. Time Value of Money – Module 1
Effective Rate of return :
The Annual Percentage Yield (APY), referenced as the effective annual rate in Finance, is
the rate of interest that is earned when taking into consideration the effect of
compounding.
Ex: Bank A gives 12% compounded monthly and bank B gives 12.5% compounded yearly.
Which is better.
23. Time Value of Money – Module 1
Inflation adjusted return or Real Rate of Return :
The real rate of return formula is the sum of one plus the nominal rate divided by the sum
of one plus the inflation rate which then is subtracted by one. The formula for the real rate
of return can be used to determine the effective return on an investment after adjusting for
inflation.
The nominal rate is the stated rate or normal return that is not adjusted for inflation.