Plan for today (13 July) Introduce time value of money (TVM) by illustrating how TVM can help us understand why maximizing shareholder wealth is an appropriate.

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Presentation transcript:

Plan for today (13 July) Introduce time value of money (TVM) by illustrating how TVM can help us understand why maximizing shareholder wealth is an appropriate corporate objective. Various examples of the 4 learning objectives for chapter 5 (see next page):

Chapter 5 Learning Objectives

How Financial Markets Reconcile Preferences for Current vs. Future Consumption

Simple TMV problems using Financial Calculator

Time value of Money in Excel

Rule of 72 from Khan Academy 7

Rule of 72 and its generalization See Rule of 72 Worksheet.Rule of 72 Worksheet

Future Value and Present Value Tables See (password is “baylorbears”) Next, go to and replicate the information contained in

Summary of Time Value Calculations

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