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Time value of money, capital budgeting, cost of capital and valuation. Placeholder content.
10 lessons · about 3.3 hours · Business undergraduate, preparing for a corporate finance exam
The first lesson is free. The other 9 (3.3 hours in all) cost $8.42 bought together.
Or $1.70 a lesson one at a time, or $20.00 a month for Minimal — cheaper once you take more than ~11 lessons a month.
The blend of the returns debt and equity investors require, weighted by how much of the company each of them funds. It is the price of waiting: at 9% a dollar arriving in five years is worth 65 cents today, at 12% it is 57. That difference is why a quarter-point moves the price more than most operating assumptions do.
This is the base case, so every bar between the ends is zero and the price is the base price. Move one slider and its bar becomes the part of $46.82 that assumption is responsible for. The terminal value is already 75% of it — most of this valuation is a claim about the years nobody forecast.
£1,000 at 10% a year, compounded annually, is worth how much after two years?
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