paraphrase.

please write each of the 3 tabs below in your own words.

* This chapter explains how important is for a manager to understand the financial statements of a business. I think that financial statements areimportant for many reasons, but these are the most significant: financial statements tell you the performance and the value (sort of) of your company; financial statements are what others are using to measure your company; and financial statements and other tools help you manage your company when you can no longer be hands on with all the details. However, this chapter also teaches us how to analyze a business financial health using financial ratios, for example, how to standardize financial statements for comparison purposes; how to compute and interpret important financial ratios; and the determinants of a firm’s profitability and growth. Financial Statements are very important in order to take the right decisions for the company. The management of the organization are responsible for the formulation of plans and policies for the future. However, they need to analize the financial statements to evaluate its performance and effectiviness. Thus, the creditors are the providers of loan capital to the organization, these decisions are to whether extend their loans or demands for higher rates. In addition, the prospective investors have the surplus capital to invest for the best opportunities, that is the reason the company needs to have financial stability so investors can make the decision for the investment. And the most important, shareholders are basically the owners of the company ande they have to wheter continue with the holding of the company's share or take the decision to sell them out and the financial statements help them to make those decisions. 

* On this charpter with the basic principles of present value and discounted cash flow valuation we are able to explain a number of things about the time value of money. The reason of this is that most investment, where they involve real assets and financial assets. We are able to analyzed using the discounted cash flow in this chapter and the current worth of a future cash flow can be determined for a given a rate of return by calculating the persent value of the cash flow involved. On the other side, because  relationship between present value and future value for a given rate, and time, we are capable to find any one of the four components using the basic present value equation. 

This week we learned the time value of money(TVM). The time value is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future; the dollar on hand today can be used to invest and earn interest or capital gains. A dollar promised in the future is actually worth less than a dollar today because of inflation.The time value of money can be broken up into two areas: present value and future value.Present value = (future cash flow) / (1+ rate of return)^number of periodsPresent value determines what a cash flow to be received in the future is worth in today's dollars. It discounts the future cash flow back to the present date, using the average rate of return and the number of periods. No matter what the present value is, if you invest that present value amount at the specified rate of return and number of periods, the investment would grow into the future cash flow amount.Future value = present value x {1 + (rate of return x number of periods)}Future value determines what a cash flow received today is worth in the future, based on interest rates or capital gains. It calculates what a current cash flow would be worth in the future, if it was invested at a specified rate of return and number of periods.Both present value and future value take into account compounding interest or capital gains, another important aspect for investors looking for good investments.

*This chapter is related with bonds with in my personal opinion is very important in a company. On the other, also there is a question that for me is very important. This question is if when we are doing some functions; it is debt or equity? I think that it is very important because with this I can see the different between them. For example, in my personal opinion, I think that that debt offerings are more common than equity offering because they are increasing the value of the company and are using other people money as a bond with promissory in monthly, quarterly, yearly with maturity. Also, I can use that debt as investment, for example, to increase the business overall. In my personal opinion, I think that bond is like a debt that the investor is having through the business.