Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

When considering bonds, issuers and investors alike need to consider the coupon rate: the interest paid by the bond. Most bonds pay out coupons on a semi-annual basis, relative to the par (face) value ...

DDM values stocks based on sum of all future dividends using a company's cost of capital. Most common DDM, the Gordon Growth Model, calculates stock price by dividing next year’s expected dividend by ...