Essay Writing Help on Essentials of Corporate Finance

Weekly Summary 2

Chapter 4 equips the learner with necessary skills concerning valuation of future cash flows. Although the chapter is shorter than the rest of the others in this book, it is valuable in educating students on the basics of the time value of money. It advises students on the time value gained on investment over a short period, as well as compounding the investment in a long duration. It gives additional information on single-case periods and multiple period approaches on investments in the present, discounts, and future time value of money.

Chapter 5 educates the student on the application of discounted cash flow valuation. It has numerous practical and real-world examples on advanced time value of cash flow. For example, there are detailed examples on Excel sheet exhibits and calculator tips on the present and future multiple values of cash flows. The authors have given clear definitions and distinctions between annuities and perpetuities as levels of valuing cash flow. The commendable contribution of the authors towards educating the students on approaches to comparing the rates to capture the effects of compounding the periods cannot be overlooked. This chapter ends with the authors revealing the different types of loans in the market, which helps the students to make a comparison on the options to consider in applications and uses in real life.

Lastly, Chapter 6 equips the student with necessary skills and knowledge on valuing stocks and bonds. It has valuable lessons in presenting the differences among common terms used in the money market, such as equity, bond, and bond valuation. In addition, the authors have presented the types of bonds in a clear, concise, and engaging manner not to confuse the reader with unnecessary details. Bond markets, interest, and inflation rates, together with factors that determine the yields of bonds, are discussed in a very informative approach.

Works Cited

Ross, Stephen A., Randolph W. Westerfield, and Bradford D. Jordan. Essentials of Corporate Finance. 8th ed. New York, NY: McGraw-Hill Irwin, 2014. Print.