Lecture 7 Earnings Properties

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Lecture 7

Preference Share

Preference share usually pays a fixed dividend and has a prior claim on the firm’s earnings and assets in case of liquidation over ordinary share. The dividend is expressed as either a dollar amount (no par value) or as a percentage of its par value. Therefore, unlike ordinary share a preference share’s par value may have real significance. If a firm fails to pay a preference share dividend, the dividend is said to be in arrears – prohibited to pay ordinary share dividend.
2
EQUITY CAPITAL – PREFERRED/COMMON

Long term fund, provided by firm’s owner Permanent form of financing No repayment is required Liquidate in the event of bankruptcy Claims on income – after satisfy claims from creditors Claims on asset – after satisfy creditor, government, employee, customer Not tax deductibility

注会6科加分常用英语

39. Capital surplus 资本溢价 40. Surplus reserves 盈余公积 41. Undistributed profit 未分配利润 42. Owner’s equity 所有者权益 43. Comprehensive income 综合收益 44. Other comprehensive income其他综合收益 Difference on translation of foreign currency financial statements 外币报表折算差 45. retained earnings (accumulated deficit)未分配利润(或累积亏损) 46. net income or loss for current period 本期损益 47. unrealized loss on market value decline of long-term equity investments 长期股权投资跌价损失 48. repair(s) and maintenance (expense )修理维护费 49. manufacturing overhead-outsourced委托加工费 50. advertisement expense, advertisement广告费 51. general and administrative expenses管理费用 52. research and development expense 研发费用 53. other general and administrative expenses其他管理及总务费用 54. other research and development expenses 其他研究发展费用 55. non-operating income (revenue) and expenses, other income(expense)营业外收入及费用 56. investment income recognized under equity method 权益法下核算的投资收益 57. gain on market price recovery of short-term investment 短期投资市价转回所得 58. gain from price recovery of inventory 存货跌价回升利益 59. other non-operating revenue-other items 其他营业外收入-其他 60. investment loss recognized under equity method权益法下核算的投资损失 61. unrealized loss on reduction of short-term investments to market 短期投资未实现跌价损失 62. loss on disposal of investments 处分投资损失 63. loss for market price decline and obsolete and slow-moving inventories 存货跌价及呆滞损失 64. other non-operating expenses-other其他营业外支出-其他 65. income tax expense (or benefit) 所得税费用(或利益) 66. assets 资产 67. current assets 流动资产 68. cash on hand 库存现金 69. cash at banks 银行存款 70. cash in transit 在途现金 71. short-term investment 短期投资 72. short-term investments-stocks 短期投资-股票 73. short-term investments-other短期投资-其他 74. notes receivable 应收票据 75. discounted notes receivable 应收票据贴现 76. other notes receivable 其他应收票据

米什金《货币金融学-英文第12版》PPT课件-第七章-股票市场、理性预期理论与有效市场假说

FinanceChapter2 Financial MarketsInterest Rates and Calculation of Interest RatesThe Behavior of Interest RatesThe Risk and Term Structure of Interest RatesThe Stock Market, the Theory of Rational Expectations, and the Efficient Market HypothesisLecture 7The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis •What Is a Stock?•Computing the Price of Common Stock•How the Market Sets Stock Prices•The Theory of Rational Expectations•The Efficient Market Hypothesis •Behavioral FinanceLearning ObjectivesCalculate the price of common stock.Recognize the impact of new information on stock prices.Compare and contrast adaptive expectations and rational expectations.Identify and explain the implications of the efficient market hypothesis for financial markets.Summarize the reasons why behavioral finance suggests that the efficient market hypothesis may not hold.What Is a Stock?1.1 What Is a Stock?A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation.This entitles the owner of the stock to a proportion of the corporation’s assets and profits equal to how much stock they own.Units of stock are called “shares”.股票（也称为股权）是代表公司一部分所有权的证券。

外研社选修7模块1Language points

5. There is no doubt that he deserves the title “outstanding player of his age”. deserve: vt.值得；应得，应受(赏罚、帮助等)： Good work deserves good pay. One good turn deserves another. These proposals deserve serious consideration. 值得注意/同情 deserve attention/sympathy deserve blame/punishment 该受责备/惩罚 deserve doing；deserve to do She deserved to win because she was the best. The old woman deserves looking after. Your suggestion deserves to be considered. considering.
3.He finished his first season as one of the top scorers in the league, with an average of 28.2 points per game. During this time, the average number of points he scored was more than 30 points per game. Chamberlain is the only NBA player who averaged over 50 for an entire season. average n. 平均；平均数; adj. 平均的；普通的 vt. 算出…的平均数；将…平均分配;vi. 平均为 a.The rainfall here averages 10 millimeters every year. b.I averaged the price of meat in four neighbourhood stores. c.The cars travel at an average speed of 40 kilometers per hour. d.I suppose I average about 5 cups of coffee a day.

商务英语术语翻译

07A1. Taking Delivery2.Factor endowments3.Learning effects4.clusters of related industries5. Location-specific advantage6.attentiveness7.industrial dispute8. equity(in accounting)9. down payment10. bonus point 11.Work permit 12. floor plan13. freehold 14.leasehold 15.stakeholder16. a filing cabinet 17.expenses claims sheet 18. no-frills airlines19. staff turnover 20.workshop1) 提货2) 要素禀赋3) 学习效应4) 相关产业集群5) 区位优势6) 周到7) 劳资纠纷8) 净资产9). 首付10) 积分11) 工作许可证12) 楼层平面图13) 永业产权14)_租赁权15). 利益悠关方16) 文件柜17) 费用报销单18) 经济型航空公司19) 员工流动20) 研讨会_07B1. Value for money2.Factor endowments3.Learning effects4.outstanding balance5. Location-specific advantage6. mortgage7.industrial dispute 8.motoring magazine 9. down payment10.press coverage 11.Work permit 12. full amenities13. leasehold 14.breakeven 15.stakeholder16.disposal 17.expenses claims sheet 18. take precautions19. staff turnover 20. civil liability1)物有所值2) 要素禀赋3) 学习效应4) 余额5) 区位优势6) 住房按揭7) 劳资纠纷8) 汽车杂志9). 首付10) 报道篇幅11) 工作许可证12) 全套设施13) 租赁权14) _盈亏平衡15). 利益悠关方16) 处置财产17) 费用报销单18) 采取防范措施19) 员工流动20) _ 民事责任08A1. Profit and loss statement2.Factor endowments3. Zero inventory4.EPS(earnings per share)5. Location-specific advantage6. Taking Delivery7.Industrial dispute8. Equity(in accounting)9. Lecture theatre10.lump sum 11.Work permit 12. Overheads13. Freehold 14.General merchandise 15.Stakeholder16. FOB(Free On Board) plimentary tickets 18. No-frills airlines 19. Staff turnover 20. Know-how1) 损益表2) 要素禀赋3)零库存4)每股收益5) 区位优势6) 提货7) 劳资纠纷8) 净资产9). 阶梯教室10) 一次性付款11) 工作许可证12) 公司日常开支13) 永业产权14)_杂货15). 利益悠关方16) 离岸价17) 免费赠送票18) 经济型航空公司19) 员工流动20)专有技术/略号08B1.A backlog of orders2. Net worth3. Financing cost4.Core competence5.Corporate event6. Bulk discount7.risk-free investment 8.Brand stretching 9. Disposal10.Bargaining power 11.Legal action 12. Annual Leave13. Leasehold 14.Roadshow 15. Operating margins16. CIF 17. Dividend per share 18. Concession19. Settle the balance 20. Tribunal rules1) 定单积压2) 净资产3) 融资成本4) 核心竞争力5) 企业社交活动6) 批量折扣7) 无风险投资8) 品牌延伸9). 出售10) 议价能力11) 法律诉讼12) 年假13) 租赁14)_路演15). 经营利润16) 到岸价17) 每股分红18) 减让19) 结清余款20) 法庭裁决。

一些英文词的标准缩写

⼀些英⽂词的标准缩写有些词可能共⽤⼀些缩写。

带星号的缩写或词来源于PeopleSoft标准。

The following standard word abbreviations should be used in naming records, fields, and SQRs:Word(s)Abbreviation DescriptionAbbreviateABRVAbbreviationAcademic ACADAcceptACPTAcceptanceAcceptedAccess ACCSAccident ACDNTAccomplishACMPAccomplishmentAccomplishmentsAccount*ACCT*Accounting*ACCTG*Accounts PayableAPAdvanced PlacementAccounts Receivable ARAccredited ACRDAccrual ACRLAccumulated*ACCUM*AccumulationACUMAccumulativeAchieveACHVAchievementAcquisition*ACQ*ActActiveACTActivityAmerican College TestAction*ACTN*Actual ACTLAddADDAddedAdditional*ADDL*Address*ADDR*Narrative data which describes a person, place or thing's location Ad hoc ADHCAdjudicateADJDAdjudicatedAdjudicationAdjusted Gross Income AGIAdjustment*ADJ*AdministeredAdministratedADMAdministrationAdmissibleAdmission ADMSAdmittanceADMTAdmittedAdvanced PlacementAPAccounts PayableAdvice ADVCAffiliation AFFLAfter AFTAge AGEAgency AGCYAgent AGNTAid AIDAlien ALNAll ALLAllocateALLOC*Allocation*ALPHALTALMNAM"Ante Meridiem" (morning)ACTAMT*Monetary value(s)ANLSANNL*ANONANSAPTAPELAPP*APPL*APPTAPRVAREAARAYARRSASCASGNASSCASMPATHLATCHATNDATTNATTRADTAUTHAUXAVLAVG The mean of two or more numbers ACGAWRDBAL*The net value (balance) of an account BNKBARGBASBTCHBEFBEGNBOTBENBIDBILLBRSBRTHBRDBRKBUDBBABLDBUSBU*BUYCALC*CAL*CALLCMPNCMPSCANCAPCPLZCRDCARCRIRCARTCSECSHCTLGCATG*CENSCTRCERTCERTCHGCHAPCRGCHARTFCHKCTZNCTYCLASCLRCLEPCLOCLBCBR*CD*Data which represents encoded values (translate or code table)CLCTCOLGCLMNCOMBCMDCMT An explanatory, illustrative or critical note, remark or observation CMMTTEECO*COMPA*CPTRCMPLCMPT When the meaning is "part", use abbreviation "PRT".COMPCONDCNFDCONF*CNSTData which is unchanging or invariableCSTCTCTCONTCNTRCNTL*CONVR*CNV*CRSPCOSTA number of people or things that have been "counted", such as inventory cycle CNTCNT A number of people or things that have been "counted", such as inventory cycle countCTRY CNTY CRSE* COVRG* CRE CRDLCR* CRDT Use "CR" for field names relating to financial data Use "CRDT" for field names relating to academic workCREFCRSXLSTXREFCUMCURR*CUR*CRSRCSTNCUST*DLYDATADPDT* A calendar day, month, and year (including century) DTTMDD*DY*A day of the week (Sunday, Monday, etc.)DEADDR*DED*DFLT*DFCTDEFN*DEGDELDLVRDMODNTLDEPT*DMVDEP*DPSTDEPR*DESCR* DSC Narrative data which translates a code or number. When a suffix, use "_DSC" (see Standard Field Name Suffix table).DSGN DEST* DETL*DETL* DEV DIFFDGT DIR DISA DSBDISC* DSPL DISP DSPDIST*DSTR DIV DCE DOC DONR DNDRVDUE DUP*EA ERLYEARN* EIC EDU EFF*EFFDT* EFFSEQ* EFRTELCTEDIEFTEM ELIG*EMRG EMPH EE* EMPL EMPLID*EMPLID* ER* EMPLMTENCB END EOT ENDR ENDR ENDW ENGNENGL ENRCH ENRLENTR ENTL EQEEOEQP ERR ESTB ETHNEVALEVNT EXM EXCPEXCL EXEC EXMT EXPCEFC XPDTEXP EXPM EXPR EXP EXTEXTR FCLT FAC FMLYFERPAFST FATH FED FLSA FEEFTFICAFLD FILE FNL FIN*FA FINE FRST FISC FY FYTDFIXFLG SW Data which functions as a flag or indicator. Used with only two possible states/conditions. Data should normally be "Y" or "N".FSA FLR FOR FGN FK FRM FMT FORMR FREEFAFSAFOBFRZFREQ*FRSHFRFULFFT FTEFCN FUNDFUNDFUTGARN*GENLGEDGLGEOGGFTGLBLGOVTGDEGRD A value assigned to reflect performance or position on a scale GPAGRADGRNTGROSGRPGUARGSLGSTHANDHEADHDR*HLTHHLDHLPHIERH Normally used in conjunction with another word (i.e., High School abbreviated as "HS").HSHSSHEDHWAYHIREHSTHMHONRHSCHOSPHH A duration of time expressed in hoursHRLYHRS*HSEHOWHRHRSID*Alphanumeric data which identifies a person, place, or thing IMGIMGIMUNIMPC IMPL IMP IMPEXP IN INCL INCMINCRINDXIDIND INDV ISIR INFOINITINJ* INOC INPT INQ ISRT INSTISTRINAS INSIU*INT INTFC* INTR INTL INVLINTVINVN INV INVEST*INVTINVC ISSITM JOB JRNL* JRJSKEY LBL LBR LABLABLNGLSTLATELATLAYFLVLCTRLED*LGLLNDRLEN*LTRLVLLISNLBDLIBLICLIC_PLTE_NBR LIFELIM*LN*LNKLIQLSTLTRLLOADLNLOC*LKLKRLOGLOGON LONGLTCLTDLONLOTLOWMAILMAINT*MJRMKMGRMAPMRTLMASMASMSKMARSMTCHMTHMTRCMAX*MEDMTMBRMSHPMMOMEMRMERCHNDSMERCHMERTMSG*MTRMETHMFILMMIDMILMIN*MINRMNTA duration of time expressed in minutesMMMISCMDEMODMONYMM*A calendar month in numeric form (e.g., 01=January)MN*MTD*MOREMOTHMOVEMULTNMWord(s) by which a person, place or thing is commonly known NMENATLNACUBONSLDS Commonly known as the "Perkins Loan"NAVNEWNXTNOKNCNCNOCRNPRTNOMNONNPSNOTNANOTENBR*Numeric data which identifies a person, place, or thing OBJOCPOCCOFFROFFCOFCROFCLOLDONLNOPNOPR*OPTORDRORGORNTORIGOTHROUTOVROHOVRDOTOWNOWNRPACKPAIDPPRPARM*PARPRTYPRKPRTPTPTPRTPPASSPASTPTRNPAYPYRLPEDPELPENDPENSPCT*Part of a whole expressed in hundredthsPD*PTD*NSLDS Common name for National Student Loan Direct System PERMPRMTPERSPSNLPINPANPHNPHYSPLCEPLNPLTEPLDGPM"Post Meridiem" (afternoon)PNTPLCYPOSN*POSTPSTLPOTNPREDPREFPRFXPREMPREQPSCRPRSTPRESPREVPRCPLPRIMPKPRINPIPRNPREVPRTYPROBPROCPRFSPRFCPROF*PROGPROJPRMSPROMPRPSPRSPPRVNPURPOPRGPURPQALQTY* A number of things other than moneyQTD*QTRQSTNRACERNGRNK Relative standing or positionRT*Numeric value expressing amount per some unit of coverage READREALRSN*RCLRCPTRECV*RCVRRCHGRECGRCMDRECON* REC*RECR RCRT RED* REF*RFND RGNL REGR REGRJCT RLAT RLSE RELGRMNG RMDR RNWLREPTREPLRPLY RPT*REQ*RQMT* RESRSRV ROTC RSDTRSGN RSRC RESP RST RSTKRSTRRSLT RET*RET*RETRRTNREVRVWREVSREVKRLRLUPRMROUTROWRSVP French abbreviation meaning "please reply" RUNRUNCTLSAL*SALESLTNSMSAVESCALSCHED*SCHLRSCHLSATSCISCR A number that expresses merit or performance SCRNSRCHSCND SS Use "SCND" for field names relating to number two in a countable series Use "SS" for field names relating to a duration of time expressed in secondsSCTN SEC* SEGSEL*SEM SEMFSENSND SR SNT SEPR SEQ* SERL SERV SESSN* SEXSHR SHET SHLT SHFT SHIP SHRT SGN SIM SITE SZ SKL SKPSOCSSN SFT SLID SOPH SRTSRC SPCL SPECSPONSPRT SPSE SQ STCK STF STG STMP STD STDVSTRTST STMT STC STAT* STS STP STPD STK STOP STR STRG STRC STU SAR SCH STDY SCMPSCMP SUBJ SUB SUBS SFXSUM* SUP* SUPL*SRVY SUSP SUSPNFLG SW Data which functions as a flag or indicator. Used with only two possible states/conditions. Data should normally be "Y" or "N".SYSTBLTKNTAPETRGTTGHTTXTINTEAMTEMPTMPL*TMPTENRTRMTRMLTRMTTSTTXT Narrative informational data such as a message or error text THERM13th MonthTIAATKTTM Hours and minutes. May include seconds, hundredths of seconds. TMKPTS A system generated Time-stampTITLTDYTOT*TOURCTYTRKTRADTRN*TRANS*TSCPXFER*XFER*XLT Meaning "Crosswalk Table" XMITTRVLTUIT*TYPUGRDUNEMPLUNITUOM*UNVRSLUNIVUNPDUNSECMAXUPDTUPRUSDEUSEUSRVACN*VLDCVLDVALVARVEH*VENDVRBLVERFVETVPVIOVISAVSTVCHRW2W4W9WVEDWKWIDW Normally used as part of a compound word (i.e., Withdrawl abbreviated as "WDRL").WDRL WHLDWHLDWMN WKSTWRT YR*YTD* ZIP ZN。

lecture7 valuation of bonds and stock

Chap. 7 /8KMPLECTURE 7The Valuation Bonds and StocksValuation of bondsLearning Objectives1.Distinguish between different kinds of bonds.2.Explain the more popular features of bonds.3.Define the term value as used for several differentpurposes.4.Explain the factors that determine value.5.Describe the basic process for valuing assets.6.Estimate the value of a bond.pute a bondholder’s expected rate of return.8.Explain three important relationships that exist in bondvaluation.Slide Contents Principles used in this Chapter1.Types of Bonds2.Bond Terminology3.Bond Valuation4.Bond Yield5.Bond Valuation: Important RelationshipsPrinciples Applied inthis Chapter •Principle 3:Money has time value•Principle 3:Risk requires reward•Principle 4:Market prices are generally rightBonds•Meaning: Type of debt or long-term promissory note, issued by a borrower, promising to its holder a predetermined and fixed amount of interest per year and repayment of principal at maturity.•Issuers or Borrowers: Corporations, US Government, State and Local Municipalities.1. Types of Bonds•Debentures•Subordinated Debentures •Mortgage Bonds •Eurobonds•Convertible BondsDebentures •Debentures are unsecured long-term debt.•For issuing firm, debentures provide the benefit of not tying up property as collateral.•For bondholders, debentures are more risky than secured bonds and provide a higher yield than secured bonds.Subordinated Debenture •There is a hierarchy of payout in case ofinsolvency.•The claims of subordinated debentures are honored only after the claims of secured debt and unsubordinated debentures have been satisfied.Mortgage Bond •Mortgage bond is secured by a lien on realproperty.•Typically, the value of the real property is greater than that of the bonds issued.Eurobonds •Securities (bonds) issued in a countrydifferent from the one in whose currency thebond is denominated.•For example, a bond issued by an American corporation in Japan that pays interest and principal in dollars.Convertible Bonds •Convertible bonds are debt securities that can be converted into a firm’s stock at a pre-specified price.2. Bond Terminology•Claims on assets and income•Par value•Current yield•Coupon interest rate•Maturity•Call provision•Indenture•Bond ratingsClaims on Assets and Income •Seniority in Claims: In the case of insolvency, claims of debt, including bonds are honored before those of common or preferred stock.Par Value•Par value is the face value of the bond, returned to the bondholder at maturity.•In general, corporate bonds are issued at denominations or par value of $1,000.•Prices are represented as a % of face value. Thus a bond quoted at 112 can be bought at 112% of its par value in the market. Bonds will return the par value at maturity, regardless of the price paid at the time of purchase.Coupon Interest Rate•The percentage of the par value of the bond that will be paid periodically in the form of interest.•Example: A bond with a $1,000 par valueand 5% coupon rate will pay $50 annually(.05*1000) or $25 (if interest is paid semi-annually).Maturity•Maturity of bond refers to the length of time until the bond issuer returns the par value to the bondholder and terminates or redeems the bond.Call Provision•Call provision (if it exists on a bond) gives corporation the option to redeem the bonds before the maturity date. For example, if the prevailing interest rate declines, the firm may want to pay off the bonds early and reissue at a more favorable interest rate.•Issuer must pay the bondholders a premium.•There is also a call protection period where the firm cannot call the bond for a specified period of time.Indenture•An indenture is the legal agreement between the firm issuing the bond and the trustee who represents the bondholders.•It provides for specific terms of the loan agreement (such as rights of bondholders and issuing firm). •Many of the terms seek to protect the status of bonds from being weakened by managerial actions or by other security holders.Bond Ratings•Bond ratings reflect the future risk potential of the bonds.•Three prominent bond rating agencies are Standard & Poor, Moody’s, and Fitch Investor Services.•Lower bond rating indicates higher probability of default. It also means that the rate of return demanded by the capital markets will be higher on such bonds.Table 7-1Favorable Factors affectingBond Rating•A greater reliance on equity as opposed to debt in financing the firm•Profitable operations•Low variability in past earnings•Large firm size•Minimal use of subordinated debtJunk Bonds•Junk bonds are high-risk bonds with ratings of BB or below by Moody’s and Standard & Poor’s. Junk bonds are also referred to as high-yield bonds as they pay high interest rate, 3-5% more than AAA rated bonds.3. Valuing Bonds Defining Value•Book value:Value of an asset as shown on a firm’s balance sheet.•Liquidation value:The dollar sum that could be realized if an asset were sold individually and not as part of a goingconcern.•Market value:The observed value for the asset in the marketplace•Intrinsic or economic value:Also called fair value—the present value of the asset’s expected future cash flows.Value and Efficient Market •In an efficient market, the values of allsecurities at any instant fully reflect allavailable public information.•If the markets are efficient, the market value and the intrinsic value will be the same.What Determines Value?•Value of an Asset = Present value of its expected future cash flows using the investor’s required rate of return as the discount rate.•Thus value is affected by three elements:–Amount and timing of the asset’s expected future cashflows–Riskiness of the cash flows–Investor’s required rate of return for undertaking theinvestmentBond Valuation•The value of a bond (V) is a combination of:–C: Future expected cash flows in the form of interest and repayment of principal–n: The time to maturity of the loan–r: The investor’s required rate of returnEquation 7-1Typical cash flows on a Bond(for Corporation)Time Cash flow0Cash inflow from Bond Issue1–Maturity Pay InterestMaturity Repay PrincipalExceptions: Bankruptcy, Bond Recalled and paid off before the due date, Mergers and acquisitions.Typical cash flows on a Bond (forbondholder)Time Cash flowO Pay for bond (Buy)1–Maturity Receive InterestMaturity Receive Par value back Exceptions: Bankruptcy, Bond Recalled, Bond sold by investor in the market before maturity date, Mergers & acquisitions.Example on Bond Valuation •Consider a bond issued by Toyota with a maturity date of 2010 and a stated coupon of 4.35%. In December 2005, with 5 years left to maturity, investors owning the bonds are requiring a 3.6% rate of return.Toyota Bond Example •Step 1 (CF):Estimate amount and timing of the expected future cash flows:–Annual Interest payments= .0435 ×$1,000 = $43.50 every year for five years–The par value of $1,000 to be received in 2010Summary of Cash Flows(For One Bond)Time Bondholder Corporation 0Price = ?Price = ?1–5$43.5–$43.55+1,000–1,000•Step 2 (r)Determine the investor’s required rate of return by evaluating the riskiness of the bond’s future cash flows. Remember the investors required rate of return equals the risk free rate plus a risk premium. Here, the required rate of return (r) is given as 3.6%•Step 3:Calculate the intrinsic value of the bond.•Bond Value= PV(Interest, received every year)+ PV(Par, received at maturity)= PV($43.5, for 5 years,r= 3.6%)+ PV($1000 at year 5, i= 3.6%)= PV of Annuity (A = 43.5; N = 5; r = 3.6%) + PV of single cash flow(FV= $1,000, N= 5, i= 3.6%)= $195.84 + $837.73= $1,033.574. Bond YieldsYield to Maturity (YTM)•YTM refers to the rate of return the investor will earn if the bond is held to maturity. YTM is also known as bondholder’s expected rate of return. •YTM = Discount rate that equates the present value of the future cash flows with the current market price of the bond.Bond Yields To find YTM, we need to know:(a) current price(b) time left to maturity(c) par Value and(d) annual interest paymentCurrent Yield•Current yield is the ratio of the interest payment to the bond’s current market price.•Current Yield = Annual interest payment/current market price of the bond Example: The current yield on a $1,000 par value bond with 8% coupon rate and market price of $700= $80 / $700 = 11.4 %Total Yield•Total Yield from Bond =Current Yield+ Capital gain/loss from sale of bond.•Thus in the previous example, if the bond was bought for $700 and sold for $725.Total Yield = 80 + (725 –700)= $105 or 105/700=15%5. Bond Valuation: ThreeImportant RelationshipsRelationship #1•The value of a bond is inversely related to changes in the investor’s present required rate of return (the current interest rate).•As interest rates increase (decrease), the value of the bond decreases (increases).Bond Valuation: ThreeImportant Relationships Relationship #2•The market value of a bond will be less than the par value if the investor’s required rate of return is above the coupon interest rate.•Bond will be valued above par value if the investor’s required rate of return is below the coupon interest rate.Discount Bonds•The market value of a bond will be below the par when the investor’s required rate is greater than the coupon interest rate. These bonds are known as discount bonds.Premium Bonds•The market value of a bond will be above the par or face value when the investor’s required rate is lower than the coupon interest rate. These bonds are known as premium bonds.•If investor’s required rate of return is equal to the coupon interest rate, the bonds will trade at par.Bond Valuation: ThreeImportant Relationships Relationship #3•Long-term bonds have greater interest rate risk than do short-term bonds.•In other words, a change in interest rate will have relatively greater impact on long-term bonds.Main Risks for Bondholders •Changes in current Interest rates (if interest rates rise, the market value of bonds will fall)•Default Risk (this may mean no or partial payment on debt as in bankruptcy cases)•Call Risk (If bonds are called before maturity date)…bond are generally called when interest rates decrease. Thus investors will have to reinvest the money received from corporation at a lower rate.。

教育类英语词汇

学校:nursery托儿所kindergarden幼儿园primary school/elementary school小学,secondary school中学教育higher education高等教育further education进修教育: parenting, schooling,enroll 入学admit 招收，录取Parents are obliged to do…父母有责任、义务去做。

compulsory education 强制教育、义务教育minors 未成年人immature 不成熟的学习的好处learn skills学习技能acquire knowledge学习知识，enrich knowledge丰富知识,widen horizon开阔视野,inspire interest激发兴趣,stimulate interest激发兴趣,cultivate v. 培养 hobbiesdevelop potentialsconduce to mental developmentlay a solid foundation for the future为将来打下坚实的根底学习上的问题:lack discipline缺少约束力/persistence毅力,test-oriented education应试型教育,quality education 素质教育cram for examinations突击考试,stuff 塞 materialsmemorise背, memorisation,rote learning死记硬背Test-taking techniques应试技巧害处：discourage critical thinking 打击评判性思维students stop questioning what they are being taught学生们不去质问他们学习的东西conduce to academic performance有助学习表现Adversely influence 负面地影响〔动作〕Exert adverse/unfavorable influence on对。

财务报表分析与证券估值英文课件 (7)

Reverse Engineering the S&P 500, May 2011
Inputs: Index level: 1357 Book value: 588 P/B: 2.3 B/P: 0.435 Forward Earnings (for the next year) $98.76 Long-term treasury rate: 3.3% Risk premium: 5.7%
CHAPTER SEVEN
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Prepared by: Stephen H. Penman – Columbia University With contributions by
Value = Value based on what we know + Speculative value
(1)
(2)
(1) Value based on what we know is the no-growth valuation
= $143.92 + $215.62 = $359.54
(2) Speculative value is the value from speculating about growth = Market price – No-growth value = $535 - $359.54 = $175.46
The Big Picture for this Chapter
• Don’t take valuation models literally üUse valuation models to challenge the market price rather than for calculating intrinsic value üUse valuation models to convert the market price to a forecast – then challenge that forecast

Lecture 7.labor

Lecture 7: Human Capital: Education and EarningsThe theory of compensating differentials suggests that wages will vary among workers because jobs are different. Wages will also vary among workers because workers are different. We each bring into the labor market a unique set of abilities and acquired skills, or human capital.We begin our study of human capital by focusing on the decision to acquire formal education. The skills we acquire in school make up an increasingly important component of our stock of knowledge.cation in the Labor Market: Some Stylized Facts表一勞動參與率與教育程度單位：%表二就業者與教育程度單位：%，千人表三失業者與教育程度單位：%2.The Schooling ModelWhat factors motivates some workers to remain in school while other workers dropout before they finish high school? We assume that workers acquire the skill level that maximizes the present value oflifetime earnings.(1) Present Value of Age-Earnings ProfilesThe present value of the earnings stream if the worker only gets a high school education is:()()()()∑=+=+++++++=46046211...11t t HS HS HS HS HS HS r w r w r w r w w PV (7-1) The parameter r is the worker ’s rate of discount. There are 47 terms in this sum, one for each year that elapses between the ages of 18 and 64.The present value of the earnings stream if the worker gets a college diploma is:()()()()()()4654321...11111r w r w r w r H r H r H H PV COL COL COL COL ++++++++-+-+--= (7-2)Direct Costs of Attending College Post-College Earnings Stream=()()∑∑==+++-3046411t t t COL t r w r HThe first four terms in this sum give the present value of the direct costs of a college education, while the remaining 43 terms give the present value of lifetime earnings in the post-college period.We assume that a person ’s schooling decision maximizes the present value of lifetime earnings. Therefore, the worker attends college if the present value of lifetime earnings when he gets a college education exceeds the present value of lifetime earnings when he gets only a high school diploma, or:HS COL PV PV > (7-3)Dollarsw COL Goes to Collegew HS Quits after High SchoolAge18 22 65-HFIGURE 7-1 Earning Streams Faced by a High School Graduate(2)The Wage-Schooling LocusThe wage-schooling locus gives the salary that employers are willing to pay for every level of schooling. The wage-schooling locus is market-determined. In other words, the salary for each level of schooling is determined by the intersection of the supply of workers with that particular schooling and the demand for those workers.Dollars30,00025,00023,00020,0000 12 13 14 18 Years of schoolingFIGURE 7-2 The Wage-Schooling LocusThe wage-schooling locus has three important properties:(a)The wage-schooling locus is upward sloping.More educatedworkers must earn more as long as educational decisions are motivated only by financial gains. To attract more educated workers, employers must compensate those workers for the costs incurred in acquiring an education.(b)The slope of the wage-schooling locus tells us by how much aworker’s earnings would increase if she/he were t o obtain one more year of schooling.(c)The wage-schooling locus is concave. As with most productionprocess, there are diminishing returns to getting an education. Defn. The Marginal Rate of Return to SchoolingThe percentage change in earnings resulting from one more year of school is defined to be the marginal rate of return to schooling.(3)The Stopping Rule, or When Should I Quit School?Suppose that the worker has a rate of discount r that is constant; that is, it is independent of how much schooling the worker gets. The stopping rule that maximizes the worker’s present value of earnings over the life cycle is given by:Quit school when the marginal rate of return to schooling = rThis stopping rule maximizes the worker’s present value of earnings over the life cycle.Rate of interestr’rMRRs’s* Years of SchoolingFIGURE 7-3 The Schooling Decision3. Is Education a Good Investment?(1)Is Education a Good Investment for Individuals?The rate of return typically estimated for the U.S. generally fall in the range of 5-15 percent.At first glance, an investment in education is about as good as an investment in stocks, bonds, or real estate.A.The Upward BiasThe typical estimates of the rate of return on further schooling overstate the gain an individual student could obtain by investing in education because they are unable to separate the contribution that ability makes to higher earnings from the contribution made by schooling.i.e., Some of the added earnings college graduates typically receive would probably be received by an equally able high school graduates who did not attend college.Methods to correct this bias:(a)Separating effects of ability and schooling by including the aptitude-test scores such as IQ.(b)Controlling for all the unmeasured aspects of ability by using data on twins.⇒Part of earnings differentials associated with higher levels of schooling are due to inherently abler persons obtaining more schooling.B.The Downward Bias(a)Some benefits of college attendance are not necessarily reflected in higher productivity.(b)Most rate-of-return studies fail to include fringe benefits.⇒Fringe benefits, usually as a fraction of total compensation, tend to rise as money earnings rise.(c)Some of the job-related rewards of college are captured in the form of psychic or nonmonetary benefits.C.Selection BiasThe measured rate of return on a college education may understate the actual return for those who choose to attend college. Likewise, the measured rate of return may overstate the return that would have been received by those terminating schooling with higher school had they instead chosen to attend college.Measured benefit B t: B t = E c c,t– E h h,tE c c,t: the earnings in a college-level job of those who choose to go tocollege.E h h,t: the earning in a high school-level job of those who choose not togo to college.Let E c h,t: the earnings in a high school-level job of those who choose to attend college terminating schooling at high school.E c h,t is perhaps less than E h h,t.⇒B c t = E c c,t - E c h,t > Bt – measured benefitE h c,t: the earnings in a college-level job of those who choose not toattend college were to alter their decisions.E h c,t is perhaps less than E c c,t⇒B h t = E h c,t - E h h,t < B t– measured benefit⇒When abilities are diverse, the principle of comparative advantage is an important factor in making choices about schooling and occupations.(2)Is Education a Good Social Investment?Some critics have suggested that to a large degree, education acts merely as a “sorting device”.⇒Schooling does nothing to alter productive characteristics. The education is simply as a filter that has the effect of “signaling”which people are likely to be most productive.Note: Even if schooling were only a screening device, it could have social value. Employers need a reliable method by which to select employees. Investment in schooling sends a signal to the labor market that one has a certain level of ability.⇒School would have net social value if the decision to attend and the success one attained in school sent accurate signals about productive characteristics to employers in the least costly way.Either education does enhance worker productivity or it is a cheaper screening tool than any other that firms could use. In either case, the fact that employers are willing to pay a high price for an educated work force seems to suggest that education produces social benefits.。

市场营销策略英文课件 (11)

2. Specify characteristics that define the segment 3. Determine segment size (large, medium, small, global),
2. Sit on alternative seats, please leave a gap of one seat between you and the next person
3. Do not look over to see what the other people are writing. The questions are mixed up and therefore you will copy the wrong questions
Fundamental Tools which Marketing strategists/managers use to reach consumers
• Fundamental tools in the marketer’s tool kit are 1. market segmentation and 2. target marketing • These tools go along with 3. product positioning, or brand positioning and
• Their running experience (Phil Knight) and making their own shoes (Bill Bowerman, coach) helped to identify a better way to deal with the problems and injuries due to running in rough/outdoor surfaces (empirical evidence).

财税英语Unit07

Answers for understanding the text
• 1.ABCD • 2.CD • 3.ABC • 4.ACD • 5.B • 6.D
Unit Social Security
What is social security?
• Generally share 4 characteristics:
– Participation is mandatory – Eligibility and benefits depend on prior
Structure of Social Security
• Pay-as-you-go Financing • Explicit transfers • Benefit structure • Age at which benefits are withdrawn • Recipient’s family status • Financing
– Convert AIME into Primary Insurance Amount (PIA) – basic benefit payable to a work who retires at the “normal retirement age.”
– Benefit schedule is progressive, where lower-earners receive a higher proportion of previous earnings.
• Benefit Structure
– Average Indexed Monthly Earnings – are an individual’s average wages throughout their working life.

公司财务讲义英文版

11
National Income and Future Spot Exchange Rate
An increase in China income will lead to more China imports from the U.S. as Chinese people spend some of income on U.S. products. This, however, would cause demand for $ and supply of $ to change and spot exchange rate to change.
Valuing International Cash Flows
M
[ E ( Cj,t ) × E ( Ej,t ) ] N j=1
PV = t=1
( 1 + r )t
E ( Cj,t ) = expected cash flows denominated in currency j to be received by parent in period t. E ( Ej,t ) = expected exchange rate at which currency j can be converted to RMB at the end of period t. r = weighted average cost of capital of parent. M = number of currencies. N = number of periods.
12
Other Factors Affecting Future Spot Exchange Rate
Political and economic environment: if political and economic environment in China is better than that in the U.S., the value of RMB will be higher than that of $, spot rate will change.

中级财务会计英文版95页PPT

Balance Sheet Format
Equity Classifications
Capital Stock
Other Contributed Capital
Owners’ Equity
Retained
Earnings
Chapter 3-14
Treasury Stock
Statement of Changes in Stockholders’ Equity
Chapter 3-18
Contingent Liabilities and Assets
No or No
Chapter 3-19
Loss
Probable (?)
Yes
and
Reasonably
estimated (?)
Yes
Reasonably possible
Disclosure
Report amount in financial statements
Balance Sheet Format
Liability Classifications
Accounts Payable
Short-term Notes Payable
Current Liabilities
Collections in advance of unearned revenue
Chapter 3-11
(Owner’s Equity)
Balance Sheet
Basic Accounting Identity
A = L + OE
Chapter 3-5
Balance Sheet
Basic Definitions - SFAC No. 6

中级财务会计(双语)第7章

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Bond--HTM
Case study 2
● Purchased Masterwear Industries’ 12%, 3-
year (from July 1, 2011 to June 30, 2014) bonds for $666,633. The face amount was $700,000. Interest is payable semiannually on June 30 and December 31. The market rate is 14%. (Suppose it’s a HTM)
当公司取得一项投资而这项投资既不是以投机为目的进行经常性的买卖也不将持有至到期时公司把这项投资归为可供出售的证券
LOGO
Chapter 7 Investments
Investment classification
The investor lacks significant influence over the investee: 投资方对被投资方缺乏重大影响
C. Recognizing “unrealized gains and losses” No entry.

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Bond--HTM
Case study 2

D. Selling the investment On June 30, 2014: (On the maturity date) Dr. Cash 42,000 Discount on bond investment 6,544 Cr. Investment revenue 48,544 Dr. Cash 700,000 Cr. Investment in bond 700,000

lecture 8 earnings management

19
CA-Computer Associates, or Creative Accounting?
But it is difficult to get new contracts and shows impressive revenue growth. So CA kept buying small software companies. After CA bought a software companies, it treats the companies’ existing contracts as CA’s new contracts. Rising revenues and net incomes led to higher and higher stock prices. CA used its high stock prices to buy more software companies. This trick goes on and on…… until there are no more software companies to buy!
5
Between shareholders and creditors Debt covenants specify firm’s upper bound for debt-to-equity ratio and dividend payout ratio To borrow more money or pay more dividend without violating debt covenants, firm tends to manage earnings up.
Lecture 8: Earnings Management
1

Lecture_7

• (1 + money discount rate) = (1 + real discount rate) × (1 + inflation rate).
1-10
Project NPV:
• • • • •
CF(0) = -151,000. CF(1 - 5) = 46,461. Discount rate = 14%. NPV = $8504.37 We would accept the project.
Inﬂation
• Inflation must be taken into account when using NPV. Either:
– real cash flows must be discounted using a real discount rate; or – money (nominal) cash flows must be discounted using a money (nominal) discount rate. • The two cannot be mixed. • In practice, it is usually easier to use money cash flows and discount rate.
2. Total the cash flows for each point in time.
3. Discount each total, according to the appropriate time into the future that the cash flow will occur. 4. Total the present values of the various discounted values to derive the NPV for the project. 5. If the NPV is positive, the project is acceptable, presuming a shareholder wealth maximisation objective.

选修7module1单词讲解 words

11. generation n. 一代（人） generation gap 代沟 the coming/future generation 12.overtime :加时赛 There is overtime of five minutes. six hours’ overtime
13.nature n. 性格；天性、本性 1).keep the balance of nature 2).The nature of the wolf can never be changed 3).Peter has a happy nature. by nature 天生地，生来 1).She is proud by nature.
1.defend v. 1）防卫，防守 2）为…辩护
eg. defend the motherland 保卫祖国 defend sb from/against sth 保护某人免受…
defence n. offend v.
冒犯，触犯，得罪
eg. When the dog attacked me, I defended myself with a stick.
7.motivation n. 动力，动机 motivate v. 激发，为… 的动机
如果你有学习的动力，你就可以克服任何困难 If you have the motivation of study, you can overcome any difficulty.
tie v/n 打成平局
eg. The game ended in a tie. 平局
19. absorb v.1）消减，缓冲 2）吸收，吸引 be absorbed in (doing) sth:对…专注 eg. 1. Basketball players wear socks and sneakers to absorb energy when they bound into the air. 2. I was absorbed in a book and didn’t hear your call.

财务报表分析双语

– Financial statements don’t reflect the whole economic events (assets, liabilities);
– Management choice of accounting methods; – Accounting principles differ in different country.
– Regulates secondary market and national exchanges
– SEC was created by this Act
• SEC has the authority to determine GAAP • Regulation S-X describes disclosure requirements
Chapter 1, Slide #6
第六页，共58页。
• Financial statements don’t fully reflect firm’s true economic position because:
– Accounting recognition and measurement don’t correspond with economic events;
Chaapptteerr11,,SSlildidee##1155
第十五页，共58页。
GAAP
• Generally Accepted Accounting Principles (GAAP) in United States
• Major Sources of GAAP
– Securities and Exchange Commission (SEC) – American Institute of Certified Public Accountants