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

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 437
• Professor: Amir Azaran

Document Summary

Pv = fv / (1+r)t r = (fv/pv)1/t - 1 t = ln (fv/pv) / ln (1+r) Pvaf(r,t) = 1/r * [1 - 1/(1+r)t ] Pv = c/r * [1 - 1/(1+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] 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. Cy = cr/price after tax yield = yield (1 - t) (1+nom) = (1+real)(1+expected inflation) (1+r) = (1+r)(1+h) 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 ++dn +pn / (1+r)n. Npv = -cost + cf1/(1+r) + cf2/(1+r)2 +