Finance

Explain why market prices are useful to a financial manager.

Discuss how the Valuation Principle helps a financial manager make decisions.

Describe how the Net Present Value is related to cost-benefit analysis.

Explain how an interest rate is just a price.

Describe how a bond is like a loan.

Principles of Finance Research Paper. Please see attachment for details. Assignment # 1 – Understanding the Concepts - market prices, Valuation Principle, Net present Value, interest rates, bonds (draws on material from Chapters 3 to 6) You are to write a three to five (3-5) page report that answers the following: 1. Explain why market prices are useful to a financial manager. 2. Discuss how the Valuation Principle helps a financial manager make decisions. 3. Describe how the Net Present Value is related to cost-benefit analysis. 4. Explain how an interest rate is just a price. 5. Describe how a bond is like a loan. The format of the report is to be as follows: Typed, double spaced, Times New Roman font (size 12), one inch margins on all sides, APA format. Type the question followed by your answer to the question. In addition to the three to five (3-5) pages required, a title page is to be included. The title page is to contain the title of the assignment, your name, the instructor’s name, the course title, and the date. NOTE: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.