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Progresso di Studio
Across all your exams
Taught in English
Questo esame si sostiene in inglese: le lezioni e le domande sono in inglese. L'interfaccia resta in italiano.
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Key formulas
Future Value
Grows money forward n periods at rate r.
Present Value
Discounts a future cash flow back to today.
Perpetuity
Present value of a constant cash flow C received forever, starting next period.
Gordon Growth Model
Growing perpetuity formula applied to dividends. Requires r_e > g.
Net Present Value
Accept the project if NPV > 0. The discount rate r is the cost of capital.
WACC
After-tax cost of debt is R_d(1−T_c) — debt interest is tax-deductible.
Part 1 of 1
A euro today is worth more than a euro tomorrow — you can invest it. Everything in finance follows from this.
Worked example
€1,000 at 5% for 2 years: FV = 1,000 × 1.05² = €1,102.50. Not €1,100 — the extra €2.50 is interest on interest. That's compounding. Reverse: €1,210 in 2 years at 10%: PV = 1,210/1.10² = 1,210/1.21 = €1,000.
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