RV (Cash) calculation in this video is incorrect! Why would I invest $110 today to get $110 after 4 years? It hasn't taken in consideration the Coupons at 8%.
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P2-D2Tutor·
The RV is simply looking at what you receive at the end of the debt period, so you take the highest of the cash and the value of the shares. You can ignore the coupon interest as whichever option you elect to receive, both will receive the coupon interest of the life of the debt instrument.
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rahul800·
All the lectures have be very useful. I would definitely make a donation as soon as I start earning!
Thank you so much
Thank you so much