Financial analysis with an electronic calculator / Mark A. White.

White, Mark A.

Bibliographic record and links to related information available from the Library of Congress catalog
1. Introduction

	Calculators vs. Computers	2
	Calculator Models Covered in this Book	3
	Hewlett-Packard HP-10B	4
	Sharp Electronics EL-733A	4
	Texas Instruments BA II Plus	4
	Notation	4
	Housekeeping Functions	5
	Memory Registers	5
	Display Formats	7
	Sign Changes	7
	Annuities and Annuities Due	8
	Compounding Frequency	8
	Troubleshooting	9

2. The Time Value of Money

	How To Solve Financial Problems	11
	Cash Flow Diagrams	12
	Identifying Variables and Writing Equations	12
	Present Value/Future Value Tables	13
	Future Value of a Present Sum	15
	Present Value of a Future Sum	17
	Future Value of an Ordinary Annuity	18
	Annuities Due	20
	Present Value of an Ordinary Annuity	21
	Solving for an Unknown Interest Rate	23
	Solving for an Unknown Number of Periods	24
	Multiperiod Compounding	25
	Nominal and Effective Rates	25
	Annual Percentage Rate (APR)	26
	Continuous Compounding	Z7
	Multiperiod Compounding with the HP-10B and BA II Plus	28
	Perpetuities	29
	The Principle of Additivity	29

3. Valuation of Financial Instruments

	The Discounted Cash Flow Model	33
	Pure Discount Securities	33
	Simple Bond Pricing	34
	Bond Yields	37
	Semiannual Compounding	39
	Semiannual Compounding on the HP-10B and BA II Plus	41
	Preferred Stock	41
	Common Stock	42
	Mortgage Instruments	42
	Loan Amortization	43
	Balloon Payments	49
	Prepaid Points	50

4. Using the Cash Flow Registers

	Net Present Value	52
	Internal Rate of Return	54
	Multiple IRRs	56
	Profitability Index	57
	Equivalent Annual Annuity	59
	Present Value of an Uneven Series of Future Cash Flows	61
	Valuing a Cash Flow Series at Time t # 0	63


	Population vs. Sample Statistics	65
	Correcting Errors	69
	Weighted Averages	69
	Linear Regression	73

6. Additional Problems	81
	Answers	97

Bibliography	147

Appendix A. Summary of Cash Flow Diagrams
Appendix B. Present Value/Future Value Tables
Appendix C. Notation Conversion Table