Formula sheet Midterm _ 1

Formula sheet Midterm _ 1 - 1 (discrete compounding) EAR =...

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BUAD - 306 Formula sheet - Midterm # 1 February 15, 2009 Assets = Liabilities + Equity NWC = CA - CL Cash flow from assets = Cash flow to creditors + Cash flow to stockholders CFA = OCF - CAPEX - ΔNWC OCF = EBIT + Dep - Taxes Net capital spending = Ending net fixed assets - Beginning net fixed assets + Depreciation ΔNWC = Ending NWC - Beginning NWC Cash flow to creditors = Interest paid - Net new borrowing Cash flow to stockholders = Dividends paid - Net new Equity raised PV 0 = FV t (1 + r ) t r = ± FV PV ² 1 /t - 1 t = ln(FV / PV) ln(1 + r ) PV Annuity = C r × ³ 1 - ± 1 (1 + r ) t ²´ FV Annuity = PV Annuity × (1 + r ) t Annuity due = Ordinary annuity value × (1 + r ) P = C r Growing annuity PV = C × " 1 - ( 1+ g 1+ r ) t r - g # Growing perpetuity PV = C r - g EAR = ± 1 + Quoted rate m ² m -
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Unformatted text preview: 1 (discrete compounding) EAR = e q-1 (continuous compounding) 1 APR = interest rate number of periods per period in a year Bond value = C 1 r 1-1 (1 + r ) t + F (1 + r ) t (1 + i ) = (1 + r )(1 + ) or i ' r + P = d 1 + P 1 (1 + r ) P = d r P = d (1 + g ) r-g = d 1 r-g ( g < r ) P t = d t (1 + g ) r-g = d t +1 r-g ( g < r ) P = d 1 r-g 1 " 1- 1 + g 1 1 + r t # + P t (1 + r ) t where P t = d t +1 r-g 2 = d (1 + g 1 ) t (1 + g 2 ) r-g 2 r = d 1 P + g P = d 1 (1 + r ) + d 2 (1 + r ) 2 + d 3 (1 + r ) 3 + + d t (1 + r ) t + P t (1 + r ) t 2...
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This note was uploaded on 04/02/2009 for the course BUAD 250B taught by Professor Jackson during the Spring '07 term at USC.

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Formula sheet Midterm _ 1 - 1 (discrete compounding) EAR =...

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