Formulas.doc
Finance 300 with Ramirez at Arizona State University - Tempe
About this note
By: Anonymous
Textbook:
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition)
Created: 2009-12-09
File Size: 1 page(s)
Views: 23
Textbook:
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition)Created: 2009-12-09
File Size: 1 page(s)
Views: 23
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Loan Payment PV = PMT 1 - 1__ (1+I) I Market Interest Rate r = r* + IP + DRP + LP + MRP T-Bond yield = r* + IP + MRP Corporate bond yield = r* + IP + MRP + DRP + LP VB = INT 1 - 1 1 + (1+r) r Current Yield : INT/Price of Bond Bond with Semiannual coupon VB = INT 1 - 1 1 + M (1+r) (1+r) r Constant Growth Stock & Declining Growth Stock : EMBED Equation.3 Zero Growth Stock : EMBED Equation.3 Expected rate of return : EMBED Equation.3 WACC = wd rd (1-T) + wp rp + wc rs Cost of Debt: After-tax cost of debt = rd (1-T) Cost of Preferred Stock :rp = EMBED Equation.3 Cost of Common Equity : CAPM Approach: EMBED Equation.3 Cost of Common Equity DCF: EMBED Equation.3 Cost of Common Equity BYRP: Bond Yield + Equity or Stock risk Premium NPV = CF + CF1 + CF2 + ??. + CFN (1+r) (1+r) (1+r) Payback = # of years prior to full recovery + Unrecovered cost at the start of the year Cash Flow during full recovery year Know how to calculate the discounted payback.
About this note
By: Anonymous
Textbook: Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition)
Created: 2009-12-09
File Size: 1 page(s)
Views: 23
Textbook:
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition)Created: 2009-12-09
File Size: 1 page(s)
Views: 23
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy
Kathy