financial mgmt midterm 1 problem key words

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18 Terms

1
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future value

what is __ worth in 1 year

2
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future value more than 1 year

calculate value after __ years

3
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interest rate

what is annual rate of return

4
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time period

how many years…?

5
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fv of ordinary annuity

$ deposited at end of each year, how much by end of __ years?

6
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pv of ordinary annuity

$ at end of each year, pv?

7
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payment of PV of annuity

what are the monthly payments?

8
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payment of FV of annuity

want $__ in ___ amount of years, how much to deposit?

9
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perpetuity

forever

10
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future value of annuity due

beginning of each year, how much will you have at end of ___ years?

11
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present value of annuity due

beginning of each year, how much worth today?

12
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future value of continuous compounding

what will x be worth after ___ years, continuously compounded

13
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bond value (annual)

annual return, what should investor pay?

14
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fair price of common stock

how much should pay for stock?

15
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stock w infinite dividends

liquidating

16
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growth dividend model

dividends will grow

17
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required return growth model

dividends grow, calculate required return

18
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