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Final

BUS 437 Study Guide - Final Guide: Tax Shield, Tax Rate, Net Present Value


Department
Business Administration
Course Code
BUS 437
Professor
Amir Azaran
Study Guide
Final

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FV = PV (1+r)t
PV = FV / (1+r)t
r = (FV/PV)1/t - 1
t = ln (FV/PV) / ln (1+r)
--
PV = C/r
PV = C * PVAF(r,t)
PVAF(r,t) = 1/r * [1 - 1/(1+r)t ]
PV = C/r * [1 - 1/(1+r)t ]
FV = C/r * [(1+r)t - 1]
FVAF(r,t) = 1/r * [(1+r)t - 1]
FV = C * FVAF(r,t)
FV = C * PVAF(r,t) * (1+r)t
t = ln [1 / (1 - PVr/C)] / ln (1+r)
PV(growing perpetuity) = C/r-g = C / r-g
PV(growing annuity) = (C/r-g)*[1-(1+g / 1+r)t] = (C/r-g)*[1-(1+g / 1+r)t]
EAR = [1+APR/m]m - 1
EAR = [1+APR/m]m - 1
EAR = eq - 1
?? EQR = (1+APR/m)n - 1
?? EMR = (1+APR)1/m - 1
APR = m[(1+EAR)1/m - 1]
FV = PV(1+r)t
---
BV = Coupon PV + Par PV
BV = annuity PV + lump sum PV
BV = C/r [1-1/(1+r)t] + F / (1+r)t
rate of return = coupon/price = current yield
YTM = CY + cap gains yield
CY = CR/price
after tax yield = yield (1 - t)
(1+nom) = (1+real)(1+expected inflation)
(1+R) = (1+r)(1+h)
R =r +h
----
P = d/r
PV = d1 / r-g = d0 (1+g) / r-g
r = (d1 / P0) +g = (d1 / P0) + (P1-P0)/P0 = div yield+ cap gain yield
P0 = D1/(1+r)1 + D2/(1+r)2 + D3/(1+r)3 + ...
P0 = D1/(1+r)1 + D2/(1+r)2 +...+Dn +Pn / (1+r)n
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