Sometimes I just love the drama in this country, even the Prime Minister can be "a bully" and in the midst of this accusation leads to another drama involving the national bullying helpline nearly has to close down.Today I was preparing my lecture material and came across a news article about the losses made by Royal Bank of Scotland (RBS) recently of about £3.6 billions. RBS is one of the UK banks to be nationalised following the credit crisis. Now it is 84% owned by the taxpayers, which make me part of the owners of the bank, since I pay tax. I thought of using RBS as an example to explain the application of present value concept in the valuation of stock prices, and I found that I could also crack a joke about "teaching Gordon Brown a lesson", that the theory of capital structure has to be re-written now that it includes the taxpayers, do we even care about the returns at all? In any case, I am not going to discuss the economic situation on this blog. It is just the use of the example that make me smile as I thought this would be quite funny.
All else, I think I am slowly moving towards getting material more organised this week about the lecture. LM so kindly engaged a "spy" and give me feedback about the students who attended my lecture, which I think have been very helpful, at least from him, I can see that students still enjoy my lecture, which I am quite reassured, so something must have been done right. So, next Tuesday the lecture will be filled with quite a number of examples to work out and explain the time value concept, annuity and the perpetuality evaluation. I quite enjoy it as I prepared them today and hope it brings out well in the lecture next week then.
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