Default risk – If the lender thinks that there's a igher probability that the borrower will default, they'll charge a higher interest rate

Calculating NPV – 1. The level and timing of the "incremental" cash flows of the investment

2. The required rate of return on the investment

2. The required rate of return on the investment

What is the purpose of Form W-2? – to itemize how much money was earned by an employee and how much was withheld and sent to the IRS

Cuales son las variables que definen una inversión – capital invested

Operating cash flow

residual value

horizon

Operating cash flow

residual value

horizon

capital invertido

cash flow de explotación

valor residual

horizonte temporal

P/E Ratio Model – Price per share/net income per share

Bonds – long-term loans made to governments or corporations that are made by investors

the entity – организация / компания

The revenue is $13,500, the cost of goods sold is $1,910, the selling, general and administrative expenses are $2,800, and depreciation is $922. What is the EBIT?

General Obligation municipal bonds – state and local bonds that are repaid with property tax dollars

APY – Annual percentage yield or (EAR) Effective annual rate which includes compounding

APY/EAR > APR

APY/EAR > APR

The revenue is $13,500, the cоst оf gоods sold is $1,910, the selling, generаl аnd аdministrative expenses are $2,800, and depreciation is $922. What is the EBIT?

valuing a stream of cash flows – compute the present value of each cash flow and then combine values to get present value. To get future value take the present value and convert it into future

Cn/(1+r)^n

Cn/(1+r)^n

an investment – un investissement

Cash inflows – The sums of money received by a business during a period of time.

prospectus – document that explains goals of fund, how it is managed, fees, past performance, and details of op