FORMULAE PROVIDED FOR CORPORATE FINANCE FINAL EXAM

FV  PV (1 rt ) FVn
PV 
1  i  n
FVn PV 1i  n
j  m
i 
1  1
 m
PMT
PVA P 
i
FVAn  PMT 

1i  n 1

i  
 
PVA  PMT 1
1 
i 
 1i  n 

D1 D1
V0  RE  g g = ROE  r
RE  g V0
D
D*  (1  Teff ) Teff = T(1- u)
1T
(1  k ) n
SnAT = Sn - Teff (Sn-WDVn) NPV  NPV0
(1  k ) n  1
EAV = kNPV

RS = (D1 + P1 - P0) /P0

1 n 1 n
E ( R )   Ri     Ri  E ( R ) 
2 2

n i 1 n i 1

n n
 2  Pi   Ri  E ( R )  2 E(Rp) =  wi E(Ri)
i 1 i 1

P2 = w1212 + w2222 + 2w1w212 12

E ( RM )  R f
E(Ri) = Rf + i [E(RM) - Rf] E ( RP )  R f   P
M
Cov ( Ri , RM ) n
i   P   wi  i
 M2 i 1
n

 e   a 1 
D
1  Teff   WACC   wi k i
 E  i 1

Corporate Finance Final Exam

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Corporate Finance Final Exam [Type text]