Present Value with Uneven Cash Flows

Present Value with Supernormal Growth Rate Time Line Which Ct+1  = Ct(1+g)1 Ct+2  = Ct(1+g)2 Ct+3 = Ct(1+g)2   ……………………………………………………………………………………………… So present value is summarized as follows:

Present Value with the Two-Stage Growth Rate This model assumes the future cash flows will grow at different rates for the different periods. Present value with the two-stage growth rate is often applied to find present value or current price of ordinary share (common stock). Time Line Constant growth rate g1 during a first stage of growth from period 0

Present Value with Constant Perpetual Growth Rate Present value with constant perpetual growth rate is often applied to find present value or current price of ordinary share (common stock). Time Line Which C0 : base amount at the beginning of period 1 (Period 0) for constant perpetual growth rate g: constant perpetual growth rate Question The XYZ  Co. has just

Present Value with Constant Growth Rate Present value with constant growth rate is often applied to find present value or current price of ordinary share (common stock). Which C0 : base amount at the beginning of period 1 (Period 0) for constant growth rate g: constant growth rate Question Mr. BB want to invest stocks from NNM Company. Suppose that

Present Value with Uneven Cash Flows-Present Value Due Present value with uneven cash flows will be deposited or invested today with appropriate discount rate, and after that different uneven cash flows will be received during more than one period. There are often four parts to equation (time value of money for multiple cash flows): the present value (PV), the future

Present Value with Uneven Cash Flows-Ordinary Present Value Present value with uneven cash flows will be deposited or invested today with appropriate discount rate, and after that different uneven cash flows will be received during more than one period. There are often four parts to equation (time value of money for multiple cash flows): the present value (PV), the future