1. Explain what Present Value and Future Value are in you own words. What is the difference between the Present Value of $ and the Present Value of an Annuity? What is a perpetuity?
2. What does the economic value added ratio explain and shows for a company.
3. Alpha which usually shows the difference between actual return and the required return given by CAPM. PLease expalain to me what a negative alpha geberated through this computation implies in detial . please . Kindy take examples and what it indicates about companies when they have negetive alpha.