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Sirajum Sarwar
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Lecture

# FIN300 Equation Sheet

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Ryerson University

Finance

FIN 300

Sirajum Sarwar

Fall

Description

(1+ r) −1
FV = PV (1+tr) FV = C×
r
1
1− t
t PV = C× (1+ r)
FV = PV (1+r) r
1
1− t
PV = FV PV = C× (1+ r) (1+ r)
(1+ r)t D r
A 1
PV = FV D FV Re gAnn1+ r)
r
m
i f (1+ r) −1
r =1+ −1 FV D C× r (1+ r)
m
m C 1+ g T
EAR = 1+ i −1 PV = 1−
m r − g 1+ r
EAR = e −1 P0= D
r
EPS
P = D1 P0= r + NPVGO
0 r − g
1− 1
Annual Interest (1+ r) t F
Current Yield = B = C× + t
Bond Price r (1+ r)
Equation Sheet for FIN 300, Sirajum M Sarwar, Ryerson University Page 1 Total Dollar Return (TDR) = Dividend Income +
Capital Gain (Loss)
1+ R = (1+ r)×(1+inflation rate)
TDR = CF t (PE− P B )= CF +tPC
P P
B B
E(R) = O × P
∑ j j E(R P = x1×E(R )1 x ×2(R )+2..+ x ×EnR ) n
j
2 2
σ P = xLσ L x σU U2+ 2x L U LU Variance of returnsσ = ∑ [O j E(R) × P j
j
σ ijCORR σ σ i, i j σ P x σ + L σL+ 2xUx UORR L U L,Uσ L U
COV(R ,R A M (R − R) +...+ (R − R) 2]
β A 2 σ =2 1 T
σ (R )M T −1
E(R ) = r +[E(R )− r ]β Profitability Index = Present valueof cash inflows
i f M f i Present valueof cash outflows
Arbitrage Pricing Theory
E(R) = R +fβ E(R1) − R1+ f] PV of CCA tax shield
CdT 1+ 0.5×k S dT 1
β 2(R ) 2 R + f] = − n
(d +

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