 |  Fundamentals of Corporate Finance, 4/e Stephen A. Ross,
Massachusetts Institute of Technology
Randolph W. Westerfield,
University of Southern California
Bradford D. Jordan,
University of Kentucky
Gordon S. Roberts,
York University
Introduction to Valuation: The Time Value of Money
S&P ProjectsThe following questions can be used with Standard & Poor's Educational Version of Market Insight.
Calculating Future Values
Find the monthly adjusted prices for Brascan Corp. (BNN). If the stock appreciates 11 percent per year, what stock price do you expect to see in five years? In 10 years? Ignore dividends in your calculations. Calculating Interest Rates
Find the monthly adjusted prices for Domtar Inc. (DTC). What is the average annual return over the past four years? Calculating the Number of Periods
Find the monthly adjusted stock prices for Petro Canada (PCZ). You find an analyst who projects the stock price will increase 12 percent per year for the foreseeable future. Based on the most recent monthly stock price, if the projection holds true, when will the stock price reach $50? When will it reach $75?
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2002 McGraw-Hill Higher Education