Extra Credit 100 Points

• Please explain the purpose of standardizing financial statements with an example.

• Please explain the benefits of ratio analysis of financial statements.

• Please explain the concept of time value of money.

• What are future value and compounding and present value of discounting?

• What are the determinants in bond pricing?

• What are systematic and unsystematic risks?

• What are the systematic and unsystematic components of return?

• Please explain the systematic risk principle.

• Please explain the concept of NPV in the capital budgeting.

• Please explain the problems with the IRR.

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