Picture the financial markets as a place for dollars are traded across time the rates returning the financial markets move dollars across time to establish their values at various points in time let’s look at moving dollars across time to establish their future values and present values will begin with future value compounding is a process by which future values are created compounding moves the present value in the future periods to determine its future value it answers the following.

Practical question if i invest to fix some today how much will have at some future date let’s look at the process of creating future value through compounding suppose we invest one dollar at an annual compound rate of interest of our percent interest is received at the end of the year at time we invest one dollar and earn a return one year later at time the future value at time consists of the original principal and interest earned on the principal interest on principle is called simple interest the one-dollar.

Principle is common and can be factored out to give this equation the future value of one dollar invested for one year at an annual rate of our percent is equal to one dollar plush now let’s reinvest this entire sum we have at the end of time one for another year the year won some has invested again to earn a $PERCENT rate of re turnover your to the future value of one dollar invested at an annual rate of our percent for two years is equal to one dollar plus R squared let’s multiply this out we obtain the component parts the process that created this future value in your to owe had the original principal we invested for two years.


Everything is done today you Property Valuation Adelaide take the shares and you’re going to sell in the market and if you can get to this price then fight but you are going to get the offer today and probably the according to close every transaction on maybe three to four months from today at that point of time we don’t know what’s gonna happen to go knishes yeah so this is what if have to say the value.

Is not certain so population probably for this particular part here is but going if you want to make it successful because they’re not happy bunny truck may not be happy so it but golly may want to they want to have a choice given so but nitro shareholders IE cash offer or share for share offer so get better choice obviously cash offers not going to be that good compact to share for share offer based on two days to the only certainty is that cash will remain the same time transaction is going to take place.

Few months later so we must get them a choice of mixture offer that then choose probably not all go for cash someone call for cash some go for shares probably can modify it by saying because some of that made me one income some income maybe give them dead plus cash bait of cash a bit of death that will give them a interest yeah interest income that kind of thing now that will be too much of this second point here and should let me just go to point number three now point number three is what I’m going to say here the value of money trust share sis based on forecaster free cash flows of the firm and it it’s based on forecast yeah it’s based.