Teach me finance
Teach me finance
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Відео

(17 of 18) Ch.21 - Short-run & long-run exchange rate risk exposure
Переглядів 1,6 тис.5 років тому
When an international company runs projects in foreign countries, it is said to be facing, or exposed to, exchange rate risk. This risk exposure is caused by the uncertainty regarding what would happen within the next 12 months (or the "short-run exposure"), as well as what would happen in more distant future (or the "long-run exposure").
(16 of 18) Ch.21 - Overseas project's Net Present Value calculation using Foreign currency approach
Переглядів 4,8 тис.5 років тому
Use the so-called "foreign currency approach" to calculate the Net Present Value (NPV) of a project that, if accepted, would be taking place overseas. The idea is - keep all expected future cash flows from the project in the foreign currency and calculate the NPV. Then, as the very last step, convert the NPV from the foreign currency into the domestic currency (e.g., Dollar).
(15 of 18) Ch.21 - Overseas project's Net Present Value calculation using Home currency approach
Переглядів 5 тис.5 років тому
Use the so-called "home currency approach" to calculate the Net Present Value (NPV) of a project that, if accepted, would be taking place overseas. The idea is - convert all expected future cash flows from the project from the foreign currency into the domestic currency (e.g., Dollar). Then, calculate the NPV in Dollars.
(14 of 18) Ch.21 - International Fisher effect
Переглядів 5 тис.5 років тому
Combine the common elements in the "Uncovered Interest Parity" and the "Relative Purchasing Power Parity" formulas and derive a new formula known as the International Fisher Effect. It says that the real interest rates are equal across different countries.
(13 of 18) Ch.21 - Uncovered interest parity
Переглядів 1,9 тис.5 років тому
Combine common elements in the "Unbiased Forward Rates" and the "Interest Rate Parity" formulas, and derive a formula in international corporate finance known as the "Uncovered Interest Parity". It shows how the expected next year's exchange rate is determined by what it is today as well as the difference between the Foreign and the Domestic risk-free rates.
(12 of 18) Ch.21 - Unbiased forward rates
Переглядів 1,9 тис.5 років тому
Explanation of a simple formula in international corporate finance known as "unbiased forward rates"
(11 of 18) Ch.21 - Interest rate parity: example
Переглядів 1,2 тис.5 років тому
A numerical example that uses the Interest Rate Parity formula.
(10 of 18) Ch.21 - Interest rate parity: derivation of formula
Переглядів 2,5 тис.5 років тому
Derivation of the "exact" and "approximate" Interest Rate Parity (IRP) formulas
(9 of 18) Ch.21 - Interest rate parity explained
Переглядів 2,1 тис.5 років тому
A numerical example that shows the relationship between the risk-free rate in the Domestic and Foreign countries, today's exchange rate between the two countries' currencies, and the required one-year forward exchange rate, that would prevent arbitrage opportunities. This relationship is known as the Interest Rate Parity.
(8 of 18) Ch.21 - Relative purchasing power parity
Переглядів 3,7 тис.5 років тому
Relative Purchasing Power Parity is a formula that shows how expected future exchange rate between two currencies should depend on what today's exchange rate is, as well as the difference between the foreign and the domestic expected inflation rates. For example, if the the cost of living is expected to increase by a lot more in Mexico than in the USA, then in order for the purchasing power of ...
(7 of 18) Ch.21 - Absolute purchasing power parity
Переглядів 1,5 тис.5 років тому
Idea: the same commodity should cost the same amount of money in different countries, when one uses the current exchange rate to convert the currencies.
(6 of 18) Ch.21 - Two types of exchange rate trades
Переглядів 8495 років тому
Spot trade vs. forward trade
(5 of 18) Ch.21 - Two types of exchange rates
Переглядів 7895 років тому
(5 of 18) Ch.21 - Two types of exchange rates
(4 of 18) Ch.21 - Exchange rate explained
Переглядів 9355 років тому
(4 of 18) Ch.21 - Exchange rate explained
(3 of 18) Ch.21 - Eurocurrency, Eurobonds, Foreign bonds, LIBOR, foreign exchange markets
Переглядів 5 тис.5 років тому
(3 of 18) Ch.21 - Eurocurrency, Eurobonds, Foreign bonds, LIBOR, foreign exchange markets
(2 of 18) Ch.21 - Calculation of "cross rate"
Переглядів 1 тис.5 років тому
(2 of 18) Ch.21 - Calculation of "cross rate"
(1 of 18) Ch.21 - Chapter overview
Переглядів 2,4 тис.5 років тому
(1 of 18) Ch.21 - Chapter overview
(1 of 17) Ch.14 - Big picture of the Chapter
Переглядів 6 тис.5 років тому
(1 of 17) Ch.14 - Big picture of the Chapter
(2 of 17) Ch.14 - Cost of capital: overview
Переглядів 5 тис.5 років тому
(2 of 17) Ch.14 - Cost of capital: overview
(3 of 17) Ch.14 - Cost of equity: explained
Переглядів 4,6 тис.5 років тому
(3 of 17) Ch.14 - Cost of equity: explained
(4 of 17) Ch.14 - Cost of equity: example using "dividend growth model" approach
Переглядів 41 тис.5 років тому
(4 of 17) Ch.14 - Cost of equity: example using "dividend growth model" approach
(5 of 17) Ch.14 - Cost of equity: example using "CAPM" approach
Переглядів 7 тис.5 років тому
(5 of 17) Ch.14 - Cost of equity: example using "CAPM" approach
(6 of 17) Ch.14 - Cost of equity: example using both approaches
Переглядів 3,5 тис.5 років тому
(6 of 17) Ch.14 - Cost of equity: example using both approaches
(7 of 17) Ch.14 - Cost of preferred stock: explanation & example
Переглядів 6 тис.5 років тому
(7 of 17) Ch.14 - Cost of preferred stock: explanation & example
(8 of 17) Ch.14 - Cost of debt: explanation & example
Переглядів 18 тис.5 років тому
(8 of 17) Ch.14 - Cost of debt: explanation & example
(9 of 17) Ch.14 - Capital structure weights: explained
Переглядів 5 тис.5 років тому
(9 of 17) Ch.14 - Capital structure weights: explained
(10 of 17) Ch.14 - Capital structure weights: 2 examples
Переглядів 3,4 тис.5 років тому
(10 of 17) Ch.14 - Capital structure weights: 2 examples
(11 of 17) Ch.14 - WACC: building the formula
Переглядів 2,7 тис.5 років тому
(11 of 17) Ch.14 - WACC: building the formula
(12 of 17) Ch.14 - Calculate WACC: example
Переглядів 18 тис.5 років тому
(12 of 17) Ch.14 - Calculate WACC: example

КОМЕНТАРІ

  • @ITsMI1107
    @ITsMI1107 6 днів тому

    Not twelleve hundred hthousand and two hundered

  • @Cheesecake99YearsAgo
    @Cheesecake99YearsAgo 9 днів тому

    2:13 Discount rate = - Typical return for investment - Required return on investment - YTM (Bonds) - Interest rates - Rate of return - Growth rate - APR annual percentage rate In this chapter (new terms) - Cost of capital - Weighted average rate of capital

  • @Nej-Beik
    @Nej-Beik 14 днів тому

    I came to your video just to answer a question from a previous final control. I liked the explanation 👏🏾

  • @Stealthyplatapus
    @Stealthyplatapus Місяць тому

    quit wiggling the mouse

  • @AsadZamanVagabond
    @AsadZamanVagabond Місяць тому

    Love for you 💖

  • @PharohMakwakwa
    @PharohMakwakwa Місяць тому

    I like it

  • @farhiya66
    @farhiya66 Місяць тому

    Thank you.

  • @stevekim3024
    @stevekim3024 Місяць тому

    you are an amazing teacher

  • @abeera2958
    @abeera2958 Місяць тому

    Thanksss❤

  • @sontyoterwase1828
    @sontyoterwase1828 Місяць тому

    This is amazing.

  • @c-lupokhrel3188
    @c-lupokhrel3188 Місяць тому

    Very clear, and clean way of teaching. Great Professor.

  • @gyo_500
    @gyo_500 2 місяці тому

    So we never plug in fA into discount rate? Always use WACC as discount rate?

    • @teachmefinance9453
      @teachmefinance9453 2 місяці тому

      @@gyo_500 That's right. "fA" is used to correctly calculate the "true" initial investment in Year 0. The WACC that you use for the discount rate does use the same two weights though, as those you use to calculate "fA".

  • @norhanmahmoud8417
    @norhanmahmoud8417 2 місяці тому

    Thank you for the amazing explanation

  • @JaneWarindi
    @JaneWarindi 2 місяці тому

    Excellent 😊

  • @大魔法師芙莉蓮
    @大魔法師芙莉蓮 2 місяці тому

    may i ask what is CPT I/Y?

    • @teachmefinance9453
      @teachmefinance9453 2 місяці тому

      @@大魔法師芙莉蓮 CPT is "compute". I/Y is "interest per year". It's the two buttons that you press in the financial calculator as part of interest rate calculations.

    • @大魔法師芙莉蓮
      @大魔法師芙莉蓮 2 місяці тому

      @@teachmefinance9453 thankyou so much

  • @ACADEMICSSTUDY
    @ACADEMICSSTUDY 2 місяці тому

    Been struggling to find a simple way to do this, this is very simplified and straight to the point thank you!!!

  • @shirleymoloi8717
    @shirleymoloi8717 2 місяці тому

    Brilliantly explained 🙌🙌🙌🙌🙌🙌🙌🙌

  • @asteral2086
    @asteral2086 2 місяці тому

    How about dividend paid last year, will D1 become D0 * (1+g)^2?

    • @teachmefinance9453
      @teachmefinance9453 2 місяці тому

      @@asteral2086 That's correct! If Do is LAST year's dividend, then in the numerator of the formula you'll need to use Do x (1 + g)^2.

  • @shirleywong6019
    @shirleywong6019 3 місяці тому

    Thank you for the explanation! However, how can I download the PPT? It would be helpful.

  • @ShaquitaBert
    @ShaquitaBert 3 місяці тому

    5726 Hermann Trace

  • @NasimAhmed-c4p
    @NasimAhmed-c4p 3 місяці тому

    Thanks ❤️

  • @Alexander_PM
    @Alexander_PM 3 місяці тому

    Russian accent has been detected 😂

  • @AmanFekadu-x5e
    @AmanFekadu-x5e 3 місяці тому

  • @MunroeMuundjua
    @MunroeMuundjua 4 місяці тому

    🙏🏼❤️!

  • @MunroeMuundjua
    @MunroeMuundjua 4 місяці тому

    Favorite ❤️!

  • @bmr9779
    @bmr9779 4 місяці тому

    Thanks, great lecture!

  • @lvbo3660
    @lvbo3660 4 місяці тому

    Would you mind sharing the ppt?

  • @teddy210
    @teddy210 4 місяці тому

    Excellent... You made it easy...

  • @GameUniverse-uv2pd
    @GameUniverse-uv2pd 4 місяці тому

    Much needed

  • @santizd
    @santizd 5 місяців тому

    Do you need to differentiate between Cash Flow to the firm or equity?

  • @santizd
    @santizd 5 місяців тому

    Hi can you explain the math behind the tax shield approach formula

  • @santizd
    @santizd 5 місяців тому

    Why in valuation they dont count cash in in current assets?

  • @4minutesclips812
    @4minutesclips812 5 місяців тому

    Can you do a video on all the techniques? (IRR, NPV, Payback, ARR, Discounted Payable) for both Profit case and savings/cost-cutting case. Thanks

  • @NavdeepKour-gs7do
    @NavdeepKour-gs7do 5 місяців тому

    Thanks

  • @chriskuczynskimusic34
    @chriskuczynskimusic34 5 місяців тому

    Thank god i googled this and found you... I am in this class right now and my professor is TERRIBLE and not helpful at all... he literally doesn't go into detail like how you are and dumbing it down for NON- Finance Majors. THANK YOU !!!!

  • @realABN
    @realABN 6 місяців тому

    G

  • @mayaal-haj9851
    @mayaal-haj9851 6 місяців тому

    Hello Dr Chernobai, not sure if you will see this but worth a shot; wouldn't EBIT be 153,000-26,000? Why are we deducting interest only after when EBIT shouldn't include it? Thank you for your videos and time

  • @noellehallman8913
    @noellehallman8913 6 місяців тому

    I dont understand why no one computes QUARTERLY dividends. Most of them pay quarterly. I cant find it for the life of me on UA-cam. HELP!

  • @kasoitzuru
    @kasoitzuru 7 місяців тому

    It's been a while since you uploaded these videos, but these are by far one of the best explanations for finance topics. Thank you so much ❤

  • @znotft
    @znotft 7 місяців тому

    love it!

  • @haisamyasin2204
    @haisamyasin2204 7 місяців тому

    👍👍👍

  • @Mitch-w1n
    @Mitch-w1n 7 місяців тому

    😂❤

  • @richardwagner4015
    @richardwagner4015 7 місяців тому

    For a topic that can easily confuse people you explained it very well

  • @lolitazamafuze2241
    @lolitazamafuze2241 7 місяців тому

    Thank you so much Very helpful Appreciat

  • @jalilnazarli13
    @jalilnazarli13 7 місяців тому

    Why are we calculating D0 is they ask for the last dividend paid (D1)?

  • @manaz8035
    @manaz8035 8 місяців тому

    Thanks from Bangladesh 🇧🇩🇧🇩🇧🇩

  • @prabudh92
    @prabudh92 8 місяців тому

    if my money gets 1.5 in 4 years then to calculate compounding annual average return could be calculated by {(final value /Initial Value )^1/4 } - 1 = same answer 10.67 %

  • @zakariabouras3683
    @zakariabouras3683 8 місяців тому

    thanks, watching this video before my Investment Theory final exam

  • @kuhubanik1532
    @kuhubanik1532 8 місяців тому

    I m from Bangladesh......Ur teaching methods excellent 👌👌 After 7 days my final exam. Now I see your vedio.

  • @FavourOkorie-is2uj
    @FavourOkorie-is2uj 8 місяців тому

    Is probability same as weight