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Unformatted text preview: NetCapSpending Dividends:NI-Change in Ret Erngs Sales-COGS=GP-Oper.Exp=Oper.Income-Int.Exp=EBIT-Taxes=NI Return: (Pt-Py)/Py Variance: Return + Avg. Rtrn=Dev X2 = Dev^2 Tot. Dev^2/ #rtrns-1=Variance of Rtrns Std.Dev: square root of variance Tot value of Port: tot. invstmnt prices Port Beta: sum of all invstmnt prices * invstmnt weights Required Return: Rf + (Be)(MKT Risk Prem) Expected Return of Port: weight*Beta=%*expected mkt ret. Total Risk measured by Std Dev Systematic Risk and Expected Return measured by Beta same systematic risk as the MKT Beta=1 Inflation Rate Premium:1+krf=(1+k*)(1+IRP) Total risk for Diversified Port systematic risk Constant growth of a Dividend: P= [D(1+g)] / k-g D= div$ g=const grwth rate k=Req Rate of Ret Op. CF:EBIT-tax+dep EBIT: sales-VCandFC-dep Most to Least Risky Bonds: Sub, Jr, Sr, Debentures more than notes(mortgage)...
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This note was uploaded on 04/19/2008 for the course RESEARCH M 4333 taught by Professor Noname during the Spring '08 term at Texas Tech.
- Spring '08