In this study I explore the relationship between an
investor's overall net monetary worth and present and
future financial security. I introduce important
numerical measures of financial security. I examine
three case studies:
1. The
impact on present and future financial security
of selling or retaining an income-generating asset.
2. The
impact of rising expense rates on present and
future financial security.
3. How
present financial circumstance affects security
before and during retirement.
In this article, I derive formulae for forward
real pricing and backward real pricing over time
periods in which inflation and savings may vary.
I use the formulae to calculate histories of the
real, nominal and real per-capita Gross
Domestic Products for the US.
In this article, a quantitative analysis of
bond trading is given. Bond pricing equations
are derived from which five types of bonds
are formally identified. A reciprocity between
a coupon bond's price and prevailing bond
interest rates is placed on a firm quantitative
footing. Finally, a bond investor's expected
return is analysed.
If it is anticipated that a property's price, say,
will increase at a rate much higher than a mortgage
rate, then it might be sensible to borrow money to
purchase the property even though such borrowing will
incur a cost. This borrowing is known as
gearing.
Herein, I analyse exactly when to apply gearing.
To raise additional working capital, a company
may elect to issue additional shares. But
to minimise the risk of erosion of value
for existing shareholders, the company may
give existing shareholders the right to purchase
these additional shares at a discounted price.
This essay examines this discounted price.
A simple analysis presented here relates an equity
investor's change in relative monetary net worth
to the company's dividend yield, its earnings
per share, and its price-per-unit-earnings ratio.
