TAILIEUCHUNG - Lecture Investment analysis & portfolio management - Chapter 18

After studying this chapter you will be able to understand: Effective / equivalent periodic rate of return, convertible debt, efficient market hypothesis, effective / equivalent periodic rate of return for non-annual cash flows, convertible debentures, convertible debentures – calculation method,. | Investment Analysis Lecture: 18 Course Code: MBF702 Outline RECAP Effective / equivalent periodic rate of return Convertible debt EFFICIENT MARKET HYPOTHESIS Effective / equivalent periodic rate of return for non-annual cash flows Rate = ., therefore, if the cash flows are made on a periodic basis other than annual, an effective rate is needed which is calculated by the following formula: (1+a) = (1+e)en Where, a – annual rate e – effective periodic rate en – number of periods in one year (. quarterly =4) Convertible debentures Convertible debentures or loan stock allow the investor to choose between redeeming the debentures at some future date or converting them into a pre-determined number of ordinary shares in the company. In order to find the cost of debt of convertibles it is necessary to be able to determine which option the investor will exercise and at what date. This will normally involve the following stages: Convertible debentures – calculation method This will .

• Tài chính doanh nghiệp
• Investment analysis
• Portfolio management
• Investment management
• Investment theory
• Investment environment
• Investment analysis
• Investment companies
• Time value of money
• Characteristics of investment
• Investment portfolio management
• Investment analysis & portfolio management
• Investment background
• Developments in investment theory
• Management of common stocks