Bond and Stock Valuation The market value of the firm is the present value of the cash flows generated by the firm’s assets:
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
PVfirm = PVdebt+ PVStock
Current Yield = I/PV =
Capital Gains Yield = [(PV1-PV0)/ PV0] =
Bonds Cur Yld Vol Close Net Change
IBM, 63/8 00 6.4 4 9913/16-1/32
IBM, 71/4s,02 7.2 60 1001/2-1/8