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%.

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.

skauntey says

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%.

P2-D2 says

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.

rahul800 says

All the lectures have be very useful. I would definitely make a donation as soon as I start earning!

Thank you so much

chap says

Good thought, that’s in my mind too..